Thomson Reuters (TRI:CA) (TRI)
National Bank of Canada cut its 12 month target price on Thomson Reuters to $190.00 from $300.00 while maintaining an Outperform rating, a move driven primarily by valuation considerations rather than a deterioration in fundamentals. The brokerage noted that the stock’s strong performance over the past year has pushed valuation multiples to elevated levels, limiting near-term upside despite continued confidence in the company’s business model.
National Bank reiterated that Thomson Reuters continues to benefit from high-quality, recurring subscription revenues, strong cash flow generation, and growing exposure to AI-enabled legal and professional services, which underpin its longer-term growth outlook. The revised target price reflects a more conservative assessment of forward returns, while suggesting the bank still views Thomson Reuters as a core, defensive compounder, but one where future gains are likely to be more measured and driven by execution rather than multiple expansion.
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