Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) has upgraded Thomson Reuters (NYSE:TRI) to ‘Buy’ from ‘Neutral’, saying the information services company’s deepening integration of generative AI across its legal, tax and corporate software businesses positions it for sustained growth and multiple expansion.
The bank set a 12-month price target of $186 for Thomson Reuters’ US-listed shares, which is more than 20% upside, and C$258 for its Toronto listing, citing accelerating organic revenue growth and a widening competitive moat anchored by proprietary data and editorial expertise.
Goldman said the mix of annualized contract value from Thomson Reuters’ Gen AI-enabled products climbed to 22% in the second quarter of 2025, up from 15% a year earlier, reflecting rapid product innovation and effective monetization.
The firm expects the company’s “Big 3” segments — Legal, Tax & Accounting, and Corporates — to post organic growth of 9% this year, rising to 10% by 2027.
“TRI’s sustainable competitive moat in AI backed by proprietary data, editorial expertise and integrated workflows will drive multiple expansion and attractive upside in the shares,” the analysts wrote.
Goldman highlighted recent launches such as Westlaw Advantage, CoCounsel Legal, and Ready to Review in tax and accounting as catalysts for product upgrade cycles and pricing power. The bank also said the 2023 acquisition of Casetext, which brought the AI-powered assistant CoCounsel into the company’s portfolio, was pivotal in accelerating innovation and adoption.
Despite recent sector-wide valuation pressure, Goldman argued the sell-off was overdone. Thomson Reuters’ next-12-month P/E multiple has compressed from 48x to 36x since mid-2025, well below its five-year average of 41x.
“We believe TRI’s sustainable competitive moat in AI backed by proprietary data, editorial expertise and integrated workflows, as well as accelerating organic revenue growth, will drive multiple expansion and attractive upside in the shares,” the analysts wrote.