Thomson Reuters (TRI) Delivers Growth, Earns Analyst Upgrade

Core Viewpoint - Thomson Reuters Corporation (NYSE:TRI) is currently considered one of the best foreign stocks to buy, with an upgrade from RBC Capital analyst Drew McReynolds from Sector Perform to Outperform, maintaining a price target of $126 [1][2]. Group 1: Analyst Upgrade and Market Context - The upgrade is attributed to a recent sharp drop in the stock price, which was influenced by a broader selloff in software and services stocks, particularly following Anthropic's launch of a legal plug-in for its Claude AI tool [3]. - McReynolds believes that the recent pullback creates an asymmetric opportunity for upside potential for Thomson Reuters [4]. Group 2: AI Impact and Market Dynamics - The analyst emphasizes the significance of "agentic AI" in transforming legal and tax services, which could lead to higher growth potential in the coming years, albeit with a wider range of outcomes [4]. - Thomson Reuters' current valuation is approximately 12.5 times forward EV/EBITDA, reflecting both the opportunities and risks associated with AI [5]. Group 3: Company Overview - Thomson Reuters Corporation is a Canadian company that provides news, information, and technology solutions to professionals in various sectors, including legal, tax, accounting, compliance, and media [6].