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TD Newcrest Upgrades Thomson Corp. (TOC) to Action List Buy

March 7, 2008 9:45 AM EST
TOC Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
TD Newcrest upgrades Thomson Corp. (NYSE: TOC) from Buy to Action List Buy and maintains a C$50 price target.

The firm notes that Thomson is trading near 52-week low levels and is down about 5% since it reported its Q4 earnings and boosted its dividend 10% last month.

TD Newcrest has become more positive on Thomson as it is now more confident that Reuters "is not about to fall off a cliff". The firm believes that the combination of Thomson and Reuters could create a "free cash flow machine once integration is complete and synergies are achieved."

Furthermore, the firm expects the closing of a deal on April 17 to cause shorts to cover their bets, possibly creating a short squeeze on shares of Thomson.

The Thomson Corporation and its subsidiaries provide information services to business and professional customers worldwide. [bcs]

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