Canaccord Genuity Reaffirms Buy On Reuters Ahead Of 2Q14 Report


In a research report released yesterday, Canaccord Genuity analyst Aravinda Galappatthige reaffirmed a Buy rating on Thomson Reuters (TRI) with a $38.25 price target, ahead of the company’s 2Q14 report. The analyst forecasts revenues to be up 1.2% y/y at $3,145M, generally in line with consensus of $3,129M, the analyst also projects an EBITDA of $876M (up 2.2% y/y).

Galappatthige wrote, “We would look for an update on net sales trends in the F&R segment and any colour around possibly achieving neutrality (or turn positive) in H2/14. We were encouraged by the comments on the Q1 call which indicated that the Americas and Asia had turned positive (56% of revenues) which suggests to us that things continue to move in the right direction”.

The analyst continued, “While we expect organic revenue growth to stay flat through 2014 in the Legal segment, we would look for any sign of improvement in the global sub-segment, mainly Latin America. Global growth slowed down in recent quarters as the company moved forward with more robust commercial policies. Historically this category has been a nice tailwind for Legal”.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Aravinda Galappatthige has a -2.4% average return and a 25% success rate. Galappatthige has a 14.3 % average return when recommending TRI, and is ranked #2415 out of 3003 analysts.

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