Thomson Reuters (TSX: TRI) has introduced ONESOURCE Sales and Use Tax AI to enhance sales tax compliance and reduce audit risks. Despite this innovative AI launch, the company’s share price has declined to CA$168.06, down 7.77% in the last month and 26.14% over 90 days. With a year-on-year total shareholder return of -28.01%, yet a strong five-year return of 72.73%, long-term investors are still seeing gains. According to analysts, the stock is 16.8% undervalued, with a fair value estimated at CA$201.97. Current market pressures, like tighter client budgets, could impact Thomson Reuters’ pricing power and growth projections, despite its dominant position in providing trusted legal and regulatory information. The company’s high P/E ratio of 31.1x surpasses industry averages, suggesting limited upside. Investors should explore potential risks and rewards while expanding their watchlist to capitalize on high-growth tech and AI opportunities.
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