Thomson Reuters (TRI) has recently received a significant boost in confidence from analysts, with RBC Capital upgrading its rating from "Sector Perform" to "Outperform." This optimistic revision comes after a period of market volatility for the company, specifically a stock price decline triggered by broader concerns regarding the disruptive potential of artificial intelligence, particularly in the legal services sector. Despite initial fears, the upgrade reflects a belief that the company is well-positioned to capitalize on the transformative power of AI, especially "agentic AI," which could redefine its core offerings and market reach.
RBC Capital Elevates Thomson Reuters' Outlook Following AI-Induced Market Corrections
On February 10, 2026, RBC Capital's analyst, Drew McReynolds, announced an upgrade for Thomson Reuters (TRI), moving its rating from "Sector Perform" to "Outperform." The price target for the stock remains steadfast at $126. This positive re-evaluation by McReynolds emerged after a notable decline in Thomson Reuters' stock value during the preceding week. The downturn was largely influenced by a general selloff across software and services companies, exacerbated by Anthropic's release of an AI-powered legal plug-in for its Claude tool on January 30, 2026. This innovation fueled anxieties about potential disruptions within the traditional legal services industry.
McReynolds interprets the recent pullback in Thomson Reuters' stock as having created an opportune "asymmetric set-up" for upward movement. He acknowledges, however, the increased complexity in assessing the total addressable market and market share dynamics for Thomson Reuters in the era of agentic AI. A pivotal factor underpinning McReynolds's bullish stance is the transformative role of AI, particularly "agentic AI," which holds the promise of revolutionizing legal and tax services. While this could unlock a considerably higher growth trajectory for the company in the coming years, it also introduces a wider spectrum of potential outcomes.
The analyst further underscored that Thomson Reuters' current valuation, approximately 12.5 times its forward EV/EBITDA, now more accurately reflects the dual nature of AI's influence – both its immense opportunities and inherent risks. Looking ahead, key catalysts for Thomson Reuters include the company's ability to differentiate itself from the broader narrative of AI disruption and the ongoing expansion of the market for legal and tax services. Thomson Reuters Corporation, a Canadian entity, is a leading provider of news, information, and technology solutions for professionals in diverse sectors including legal, tax, accounting, compliance, and media globally. Its flagship platforms, such as Westlaw and Reuters News, are indispensable tools for corporations, governments, and institutions seeking vital data and insights.
This analyst upgrade highlights the ongoing recalibration of market perceptions regarding the integration of advanced technologies like AI within established industries. It underscores the potential for innovative companies to not only navigate but also thrive amidst technological shifts, turning perceived threats into strategic advantages. For investors, this development signals a renewed confidence in Thomson Reuters' capacity for adaptation and growth in an increasingly AI-driven global economy.