Thomson Reuters Gains Outperform Rating with $126 Target, 12.5x EV/EBITDA Valuation
RBC Capital upgraded Thomson Reuters from Sector Perform to Outperform on February 10, retaining a $126 price target after the stock fell sharply in the prior week. The analyst cited a 12.5x forward EV/EBITDA valuation and potential upside from agentic AI in legal and tax services.
1. Upgrade Details
On February 10, RBC Capital raised Thomson Reuters’ rating from Sector Perform to Outperform, keeping the price target at $126 after a sharp stock drop in the prior week.
2. Impact of Agentic AI
The analyst highlighted that agentic AI advancements could reshape legal and tax services revenue, offering an asymmetric upside potential while outcomes remain uncertain due to evolving market share dynamics.
3. Valuation and Catalysts
Trading at roughly 12.5 times forward EV/EBITDA, Thomson Reuters is viewed as balancing AI-driven growth opportunities and risks, with potential catalysts including differentiation from broader AI disruptions and continued expansion of its professional services markets.