TRI - Thomson Reuters slips 2% as RBC goes Neutral on valuation

Thomson Reuters (NYSE:TRI) is down 1.8% alongside a downgrade to Sector Perform at RBC Capital Markets, from Outperform. That's on valuation; the firm says it's "taking another breather" following a fresh bounce in the stock ahead of earnings. It's gained relatively steadily for the past three weeks and is up 47% in 2021. Despite going Neutral, it still sees the company as a "high-quality core holding" that can deliver total returns of 10%-plus per year. Meanwhile, Thomson Reuters is set to report its third-quarter results tomorrow and RBC is expecting to see some "near-term margin headwinds kicking in" because of reinvestment, but still a solid quarter. Consensus expectations are for $0.38 in earnings per share on revenues of $1.5 billion.

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Thomson Reuters slips 2% as RBC goes Neutral on valuation