Canadian broker downgrades Thomson Reuters
Monday 22 September 2008
Thomson Reuters has been downgraded and its price target cut as a result of the negative implications last week's market turmoil on the financial sector and the broader economy.
“The possibility of further financial services consolidation combined with increased discipline and restraint as the global financial system recapitalizes are likely to reduce the size and near-term growth outlook for many of Thomson Reuters’ end-markets,” RBC Capital Markets analyst Drew McReynolds said in a research note.
He also noted that volatility in emerging markets suggests a slower pace for the company’s geographic expansion efforts.
McReynolds cut his price target from US$39 per share to US$37 and moved his rating to “sector perform” given Thomson Reuters’ 18 per cent two-day run-up.
He does not expect a major catalyst for the stock - more clarity on the pending downturn in its markets division - until the first half of 2009. ■
- National Post