Thomson Reuters (TRI) Lower Amid Downgrade to 'Hold' at TD Securities
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Price: $152.57 -0.04%
Rating Summary:
9 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
9 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Thomson Reuters (NYSE: TRI) is lower Monday after TD Securities downgraded the stock from Buy to Hold and cut its price target from C$34 to C$31, saying there are just too many headwinds following Q3 results.
"We are lowering our forecasts for Thomson Reuters (TRI) in the wake of weak Q3/12 results and continuing evidence that it will be at least 2014 before we see a return to positive organic revenue growth for the company's Financial & Risk (F&R) segment," analyst Vince Valentini stated.
While shares are undervalued versus its long-term growth potential, Valentini believes "we are still likely 12-18 months away from completion of the product and service overhaul in the F&R segment, and the demand environment in global financial services has remained stubbornly weak."
He also warns that it is increasingly unlikely that revenue growth will accelerate above 3-4% in 2014, which he said is the level needed to exceed fixed-cost inflation and thereby drive positive operating leverage.
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 $28.20 yesterday.
"We are lowering our forecasts for Thomson Reuters (TRI) in the wake of weak Q3/12 results and continuing evidence that it will be at least 2014 before we see a return to positive organic revenue growth for the company's Financial & Risk (F&R) segment," analyst Vince Valentini stated.
While shares are undervalued versus its long-term growth potential, Valentini believes "we are still likely 12-18 months away from completion of the product and service overhaul in the F&R segment, and the demand environment in global financial services has remained stubbornly weak."
He also warns that it is increasingly unlikely that revenue growth will accelerate above 3-4% in 2014, which he said is the level needed to exceed fixed-cost inflation and thereby drive positive operating leverage.
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 $28.20 yesterday.
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