Goldman Sachs Upgrades Thomson Reuters (TRI) to Buy

Goldman Sachs analyst George Tong upgraded Thomson Reuters (NASDAQ: TRI) from Neutral to Buy with a price target of $186.00 (from $192.00).

The analyst comments: "We believe TRI's positioning with AI has significantly strengthened in recent quarters, driving robust and accelerating high-single-digit organic revenue growth in its Big 3 segments. The mix of annualized contract value from Gen AI-enabled products at TRI reached 22% in 2Q 2025, up from 15% in 3Q 2024, driven by significant product innovation involving Gen AI and agentic AI, as well as effective monetization of these products. We view the company's recent launch of Westlaw Advantage and CoCounsel Legal, as well as Ready to Review and Ready to Advise in Tax & Accounting, to name a few, as drivers of product upgrade cycles and accelerating pricing increases over the next several years. Of note, the broader Info Services sector has de-rated from an average of 35x NTM P/E in late-July 2025 to 27x currently on AI concerns, with TRI's multiple compressing from 48x to 36x despite accelerating organic revenue growth, quarterly outperformance on revenue and EPS, and upward revisions to management's outlook since its 2024 investor day. We believe TRI's sustainable competitive moat in AI backed by proprietary data, editorial expertise and integrated workflows, as well as accelerating organic revenue growth, will drive multiple expansion and attractive upside in the shares."

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 $154.68 yesterday.

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