Thomson Reuters (TRI) posted solid Q3 results, beating expectations, but shares eased as the company guided full-year organic growth to the lower end of prior guidance, Morgan Stanley said in a Tuesday note.

Management now expects full-year organic growth at the lower end of the 7%-7.5% range, citing a slower print recovery, government contract cancellations, and softer corporate sales momentum, according to the report.

Legal Professionals posted a record 9% organic growth, while Print declined 4%. The company also raised its 2026 margin expansion target to 100 basis points from 50 basis points and guided free cash flow to $2.1 billion.

Analysts noted that while Thomson Reuters' fundamentals and execution remain strong, its valuation limits near-term upside potential.

The firm maintained an equal weight rating on the stock and lowered its price target to $172 from $187.

Price: 147.92, Change: +1.19, Percent Change: +0.81