Broker cuts Thomson Reuters for second time in four days
Tuesday 26 July 2011
For the second time in four days, a Canadian brokerage has downgraded Thomson Reuters' price target. Royal Bank of Canada's brokerage RBC Dominion Securities also removed its outperform rating and said the group's markets division may not deliver five per cent revenue growth next year.
“We now view the stock as largely range-bound, pending better visibility on the growth outlook for Markets,” analyst Drew McReynolds wrote in a research report. The company is likely to provide guidance with its fourth-quarter results in February 2012. “In the meantime, we expect sluggish 1 per cent to 2 per cent growth from Markets to be a headwind for the stock.”
RBC downgraded its rating to sector perform and dropped its price target to US$42. It had cut the target from $48 to $46 on Friday. The stock is down 12 per cent since the end of April, and McReynolds suggests investors wait for a “more timely” entry point. ■
- The Globe and Mail