Thomson Reuters Corporation (NYSE:TRI) is one of the best foreign stocks to buy right now. On February 10, RBC Capital analyst Drew McReynolds upgraded Thomson Reuters Corporation (NYSE:TRI) from Sector Perform to Outperform. He also kept the $126 price target unchanged.
According to the analyst, the upgrade is related to the stock’s sharp drop in the previous week, which was triggered by a broad selloff in software and services stocks. This was partly due to Anthropic’s launch of a legal plug-in for its Claude AI tool on January 30, 2026, which raised fears of disruption in legal services, said McReynolds.
McReynolds views Thomson Reuters’ pullback from the slump as creating an asymmetric set-up now to the upside. However, he acknowledged more complex total addressable market and market share equations for Thomson Reuters with agentic AI.
Key to McReynolds’s optimism is AI’s role, particularly “agentic AI,” which could change how legal and tax services work. This could lead to a higher potential growth ceiling over the next several years but also a wider range of outcomes, noted McReynolds.
The analyst highlighted Thomson Reuters’ current valuation at about 12.5 times forward EV/EBITDA as better reflecting both the opportunities and risks tied to AI. He added that potential catalysts include the company separating itself from the broader AI disruption narrative, and continued expansion of the market for legal and tax services.
Thomson Reuters Corporation (NYSE:TRI) is a Canadian company that provides news, information, and technology solutions to professionals in legal, tax, accounting, compliance, and media industries worldwide. Its flagship platforms, such as Westlaw and Reuters News, are widely used by corporations, governments, and institutions to access critical data and insights.
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Disclosure: None. This article is originally published at Insider Monkey.