Is Thomson Reuters stock a buy right now?

Its stock has made a since last October, but is there more upside left in Thomson Reuters (Thomson Reuters Stock Quote, Chart, News, Analysts, Financials NYSE:TRI).

RBC Dominion Securities analyst Drew McReynolds is feeling a little more optimistic about TRI, but not quite enough to recommend the stock at these levels.

As reported by the Globe and Mail the analyst April 30 raised his price target on Thomson Reuters from (U.S.) $153.00 to $156.00, while maintaining his “Sector Perform” rating on the stock.

“At current valuation (FTM EV/EBITDA of 24.6 times), we believe the bar to deliver consolidated organic revenue growth in excess of 6 per cent has risen with the organic revenue growth trajectory over the 2024-2026 period now taking centre stage,” McReynolds wrote. “While we remain patient for more timely and/or attractive accumulation points following the run-up in the shares over the past year, we believe current valuation levels (i.e., FTM EV/ EBITDA more than 20.0 times) are fundamentally justified provided: (i) management meets or exceeds a 7-8-per-cent organic revenue growth trajectory by 2026 without meaningful changes to the company’s current margin, capex and FCF conversion profile; (ii) solid execution on the GenAI playbook continues with little change to the current GenAI narrative including perceived opportunities and risks; and (iii) the valuation impact of interest rate expectations/bond yields at worst is neutral.”

At press time, shares of Thomson Reuters on the NYSE were down 0.1% to $153.40.