Wells Fargo upgrades Thomson Reuters stock to Overweight on AI benefits

Investing.com - Wells Fargo upgraded Thomson Reuters (NASDAQ:TRI), currently valued at $78.24 billion, from Equal Weight to Overweight on Tuesday, raising its price target to $212.00 from $187.00. According to InvestingPro data, the company trades at a P/E ratio of 48.5x, reflecting premium market positioning.

The financial services firm cited misplaced AI concerns that have caused Thomson Reuters’ multiple to contract since the second quarter of 2025, arguing that the company should actually benefit from artificial intelligence through better pricing power and increased wallet share. The company maintains a "GOOD" financial health score and has consistently paid dividends for 37 consecutive years.

Wells Fargo expects Thomson Reuters’ Legal organic constant currency growth to accelerate in the second half of 2025, driven by increased adoption of Westlaw Precision and Advantage products, which are providing a pricing tailwind.

The firm noted that while adoption will take time to ramp up, it views the Advantage upgrade cycle positively as each cycle introduces a new growth opportunity for the information services company.

Thomson Reuters’ recurring revenue is already running at 9.0%, and transactional revenue comparisons will ease in the second half of the year, giving Wells Fargo confidence in an acceleration of growth.

In other recent news, Thomson Reuters reported its Q2 2025 financial results, highlighting a 7% organic revenue growth, which met expectations. The company also posted an adjusted earnings per share (EPS) of $0.87, marking a slight increase from the previous year. Additionally, Thomson Reuters announced a $1 billion share repurchase program, approved by the Toronto Stock Exchange, allowing the repurchase of up to 10 million common shares. This program, running from August 19, 2025, to August 18, 2026, represents approximately 2.22% of its issued and outstanding shares. To facilitate this, Thomson Reuters has established an automatic share purchase plan (ASPP) with its broker, enabling share purchases during pre-determined blackout periods. These developments reflect the company’s strategic moves to manage its capital and enhance shareholder value.

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