TD Securities Downgrades Thomson Reuters (TRI) to Hold

TD Securities downgraded Thomson Reuters (NYSE: TRI) from Buy to Hold with a price target of C$53 from C$59. Analyst Vince Valentini thinks Brexit will create uncertainty and macro headwinds.

"We still believe that TRI shares offer some very strong defensive attributes (balance sheet, liquidity, and dividend yield), but our outlook for the company's growth is now much more subdued. Accordingly, we could see some risk to TRI's multiple (see Exhibit 2 for recent history). With the Euro area, and the U.K. in particular, likely to see economic growth stall in the wake of Thursday's decision, we believe that it will be difficult for TRI to continue to deliver the same level of turnaround in revenue growth it has in the recent past. We believe that the European bank selloff experienced on Friday (see Exhibit 1) highlights the less-than-rosy outlook for some of TRI's key customers," said the analyst.

For an analyst ratings summary and ratings history on Thomson Reuters click here. For more ratings news on Thomson Reuters click here.

Shares of Thomson Reuters closed at $39.98 yesterday.

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