Thomson Reuters (TRI) can find a firmer floor by disconnecting from the broader AI disruption narrative in 2026, RBC Capital Markets said in a Thursday note.

"Not unlike other information services companies, disconnecting from the broader AI disruption narrative in 2026 remains the key catalyst for the stock," the report said.

The report also said conviction levels on Thomson Reuters sustaining or strengthening its competitive position within legal and tax verticals over the next 3-5 years has increased.

The note pointed to the provision of 2026-2028 adjusted EBITDA margin guidance reflecting annual expansion of 100 basis points, and potential normal course issuer bids on any share price weakness given its excess balance sheet capacity.

"We do expect the stock to finally find a firmer floor at current levels," the note said.

RBC lowered its price target to $126 from $155 while keeping its sector perform rating.

Price: 87.29, Change: -1.03, Percent Change: -1.16