Resilient Westlaw Moat and Steady Growth Support Thomson Reuters Buy Rating

Canaccord Genuity analyst Aravinda Galappatthige has maintained their bullish stance on TRI stock, giving a Buy rating yesterday.

Aravinda Galappatthige has given his Buy rating due to a combination of factors tied to Thomson Reuters’ structural strengths and valuation. He argues that the new AI plug-ins from Anthropic are aimed at low-complexity, internal legal workflows and fall well short of the breadth, depth, and rigorous curation underpinning Westlaw, meaning little direct risk to TRI’s core legal clientele. He also highlights that only a modest slice of TRI’s revenue exposure lies in smaller firms where substitution risk is marginally higher and that courts, regulators, and major law firms will continue to demand the fully annotated, authoritative content suites TRI provides.
He forecasts steady financial performance, calling for high-single-digit organic growth led by the Big 3 segments, near-term EBITDA in line with Street expectations, and no change to the 2026 outlook of expanding margins and 7.5–8% organic growth. Despite trimming his target to $130 to reflect sector multiple compression, he underscores that TRI still trades at about a 5.3% free cash flow yield, has balance-sheet capacity for buybacks, and should compound value as management executes on the multi-year guidance, all of which warrant maintaining the Buy recommendation.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a C$285.00 price target.

Based on the recent corporate insider activity of 148 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRI in relation to earlier this year.