Wells Fargo Upgrades Thomson Reuters To Overweight, Shares Gain 2%

Wells Fargo upgraded Thomson Reuters (NASDAQ:TRI) to Overweight from Equal Weight and raised its price target to $212 from $187. Shares rose nearly 2% in premarket trading Tuesday.

The analysts said investor concerns around artificial intelligence had caused the stock’s multiple to contract but argued that Thomson Reuters was actually positioned to benefit from AI adoption.

They noted that growth in the company’s Legal segment should accelerate in the second half of the year, driven by uptake of Westlaw Precision and Advantage. Recurring revenue was running at 9%, while easier comparisons for transactional revenue provided further support.

The analysts said the Advantage upgrade cycle would be a key long-term driver of growth.