Deutsche Bank Initiates Coverage on Thomson Corp (TOC) with a Buy; Upgrades Reuters (RTRSY) to Buy

August 22, 2007 9:14 AM EDT

Deutsche Bank initiates coverage on Thomson Corporation (NYSE: TOC) with a Buy. Price target CAD$54.

Deutsche Bank also upgrades Reuters (Nasdaq: RTRSY) from Hold to Buy.

Deutsche analyst says, "Thomson is in-the-process of-acquiring Reuters plc to create Thomson-Reuters (TR). TR will be the leading information solutions provider for professional markets. Synergies and legacy cost savings programmes should add over $1bn to the starting $2bn EBITA base. The company will have to consider cash returns within 18 months. So TR ticks the two key boxes for publisher stock outperformance - costs and balance sheet. Main risks include the deal being blocked for regulatory reasons, evolution of the financial markets cycle, competitor response (e.g. potential changes in strategy from Bloomberg and/or a combination of Reed Elsevier and Wolters Kluwer) and capital allocation."

Related Categories

New Coverage
Upgrades

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?