Thomson Reuters Corporation (TRI:TSX) Analysts rate as a Buy, $140 target

STA Research
by: STA Research

Based on the Thomson Reuters Corporation stock forecasts from 9 analysts, the average analyst target price for Thomson Reuters Corporation is CAD 140.93 over the next 12 months. Thomson Reuters Corporation’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Thomson Reuters Corporation is Neutral, which is based on 6 positive signals and 7 negative signals. At the last closing, Thomson Reuters Corporation’s stock price was CAD 125.77. Thomson Reuters Corporation’s stock price has changed by +0.20% over the past week, +3.24% over the past month and +4.32% over the last year.

Recently, CIBC Capital Markets upgraded the stock to Outperform from Sector Perform, with a $149 target on the stock.

The Thomson Reuters Corporation offers services related to business information in the areas of the Americas, Europe, the Middle East, and Africa, as well as the Asia Pacific region. The company formerly went by the name The Thomson Corporation, but in April 2008 it officially changed its name to the Thomson Reuters Corporation. The current location of the company’s headquarters, which dates back to 1851 and is in Toronto, is in Canada. The Woodbridge Company Limited is the parent company, and Thomson Reuters Corporation is one of its subsidiaries.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

 

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