Thomson Reuters Shares Reflect Competition, Pricing Risks, RBC Says

MT Newswires Live06-19

Thomson Reuters (TRI) shares already reflect reasonable risks tied to competition and pricing relative to the company's near-term organic revenue growth outlook of 7% to 8%, RBC Capital Markets said Thursday in a report.

Several developments in the first half of June point to greater competitive and pricing pressure, while appearing neutral for the company's margins and long-term market opportunity, the analysts said.

New AI tools are reducing reliance on traditional billable-hour work while expanding demand for technology-based workflows, the report said. The shift is likely neutral to slightly positive for Thomson Reuters because it benefits from more work moving in-house to software platforms, the report said.

RBC said distributor revenue-sharing is unclear, though it still sees near-term margin gains supported by operating leverage, cloud costs as the main AI expense, and rising AI adoption by US audit firms.

RBC reiterated its outperform rating on Thomson Reuters stock with a $129 price target.

Price: 78.24, Change: -1.01, Percent Change: -1.27

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