Thomson Reuters (TRI) is positioned to sustain its competitive position within legal and tax verticals over the next three years on agentic AI momentum, with valuation now better reflecting the growth and risk profile of the stock, RBC Capital Markets said in a research report emailed Thursday.

While the AI disruption narrative is likely to persist due to rapidly improving frontier model capabilities in a competitive market, the company has witnessed some disconnection from this narrative, which has directionally eased since early 2026, analysts wrote.

This trend could, in part, indicate that the company's own large-language model is delivering outcomes comparable to, or better than, the frontier LLMs at a lower latency and cost, according to the note.

The company's upwardly revised 2026 revenue guidance reflects the "firing of most cylinders," given steady innovation and a robust sales pipeline, while the margin expansion trajectory remains intact, according to RBC.

The brokerage reiterated its outperform rating on the stock and boosted its price target to $124 per share from $121.

Price: 99.34, Change: +0.73, Percent Change: +0.74