Thomson Reuters (TRI – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Aravinda Galappatthige from Canaccord Genuity maintained a Hold rating on the stock and has a $175.00 price target.
Aravinda Galappatthige has given his Hold rating due to a combination of factors including Thomson Reuters’ recent financial performance and future guidance. The company’s Q1 results showed stronger-than-expected earnings per share and EBITDA, primarily due to effective cost management, although revenues were slightly below expectations. The firm demonstrated robust organic growth in its key segments, yet overall revenue growth was modest at 1%, partly influenced by variations in estimates related to mergers and acquisitions.
Despite the positive organic growth in major segments such as Legal Professionals, Corporates, and Tax Professionals, there were areas of concern, such as the decline in Global Print and Reuters News revenues. The company’s guidance for 2025 remains steady, with expectations of moderate total revenue growth and a significant EBITDA margin. Given these mixed results and the current valuation, Galappatthige’s Hold rating reflects a cautious stance, suggesting that while the company is performing well in certain areas, there are still uncertainties that warrant a more conservative outlook.
According to TipRanks, Galappatthige is an analyst with an average return of -1.5% and a 46.03% success rate. Galappatthige covers the Communication Services sector, focusing on stocks such as Telus, Cogeco Communications, and BCE.
In another report released on April 28, RBC Capital also maintained a Hold rating on the stock with a $182.00 price target.