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Broker cuts Thomson Reuters rating

Friday 7 August 2009

Broker Jefferies International cut its rating on Thomson Reuters to Underperform from Hold, saying that while Thursday's second quarter results were excellent they likely represented the peak of cost savings.

The broker also noted that a decline in subscriptions in the Markets division would likely trickle through later this year.

The Q2 results were better than expected and the company affirmed its 2009 outlook that revenue will grow despite tough conditions in the financial industry.

Profit growth was attributed to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year.

CEO Tom Glocer said the fallout from the financial crisis will likely squeeze the Markets division in the second half of the year. ■

SOURCE
MarketWatch