Gold prices remain near record highs; Fed cut bets prompt weekly gains
Investing.com -- Wells Fargo upgraded Thomson Reuters to Overweight from Equal Weight, saying investor worries that artificial intelligence rivals could erode its legal research business have unfairly weighed on the stock
Shares have traded at a lower earnings multiple since the company’s second-quarter results, which the brokerage said reflected “misplaced AI concerns.”
“TRI has increasingly been labeled an AI loser following the rise of Harvey AI,” analysts wrote, on OpenAI-backed startup that recently gained access to LexisNexis’ legal database.
Wells Fargo said the deal gives Harvey limited reach, positioning it “more as a distribution platform than a true threat in legal research.”
It added that Thomson Reuters has a head start in legal research AI and its platforms are more tailored to professional workflows.
Analysts expect the company’s Legal segment to pick up speed in the second half, given the rollout of products such as Westlaw Precision and Advantage.
“We view the Advantage upgrade cycle very positively, as each cycle introduces a new leg of growth,” Wells Fargo said. It forecast legal revenue growth of 8.4% in 2025 and 9% in 2026.
Recurring revenue is running at 9%, while transactional revenue is expected to improve against easier comparisons later this year. The brokerage also said Thomson Reuters’ tax and accounting business faces little risk from AI disruption because of the complexity of the tax code and high switching costs.
Wells Fargo raised its price target to $212 from $187.
“We view TRI as an AI beneficiary, as it should drive better pricing power and capture greater wallet share,” the analysts said.