In a report released today, Toni Kaplan from Morgan Stanley maintained a Hold rating on Thomson Reuters (TRI – Research Report), with a price target of $183.00.
Toni Kaplan has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing Thomson Reuters. The company has shown commendable growth, moving from low to mid-single-digit growth rates, with high-single-digit growth in its key segments, thanks to strategic investments and divestitures. However, the sustainability of this growth remains a critical factor, as some areas of the business are susceptible to economic downturns, despite the overall resilience of its recurring revenue model.
Thomson Reuters is also at the forefront of AI integration in its services, particularly in the legal and tax sectors, which presents significant growth opportunities. While the company has made strides in AI, it is still in the early stages, with many clients yet to adopt these technologies enterprise-wide. The focus on privacy and proprietary content gives Thomson Reuters a competitive edge, but the full potential of these initiatives is yet to be realized. These factors contribute to the Hold rating, as the company balances its current achievements with future growth prospects.
In another report released on March 10, Wells Fargo also maintained a Hold rating on the stock with a $177.00 price target.
Based on the recent corporate insider activity of 80 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.