TRI downgraded to Underweight from Neutral

Investment bank Piper Jaffray issued the downgrade and cut its price target for the share to $31 from $33. Thomson Reuters closed on Wednesday at $34.51 on volume of 656,288 shares, above the average daily volume of 390,839. The stock is currently above its 50-day moving average of $33.25 and above its 200-day moving average of $32.04.

Piper’s analyst said: “Increased investment spending, higher integration costs associated with Reuters, and still anemic revenue trends will translate into lackluster earnings on a near-term basis. We see limited catalysts for the share over the next six months given the uninspiring earnings outlook and, accordingly, lower our rating to Underweight from Neutral. We still like Thomson Reuters’ franchise, management team, and long-term growth prognosis, but within our coverage universe we see more attractive opportunities elsewhere within the next six months.”

The website SmarTrend, reporting the downgrade, said it was bullish on Thomson Reuters. SmarTrend alerted its subscribers to watch for a reversal of this month’s 2.6 per cent increase in the value of the stock since an Uptrend alert on 1 February at $33.63. ■