Thomson Reuters (TRI) stock surged 5.06% during intraday trading on Tuesday, following a significant analyst upgrade that highlighted the company's growth prospects driven by artificial intelligence.
The rally was triggered by RBC Capital Markets upgrading Thomson Reuters to Outperform from Sector Perform, with a price target of $126. Analysts cited multi-year upside potential from agentic AI monetization, accelerating revenue growth, and strategic acquisition opportunities. RBC noted the company's improved risk-reward profile and its potential to decouple from broader AI disruption concerns.
Key factors driving the optimism include Thomson Reuters' strengthening competitive position in legal and tax verticals through AI, $11 billion in excess capital through 2028 for share repurchases, and projected 14% compound annual net asset value growth from 2025 to 2029. The analyst report emphasized that the company's growth ceiling has expanded with AI, creating an "asymmetric set-up now to the upside" following the stock's recent pullback.