Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Thomson Reuters Corp. (TSX: TRI) is a leading provider of business information services. Its product portfolio includes highly specialized information-enabled software and tools for legal, tax, accounting, and compliance professionals combined with the world's most global news service – Reuters. Kalkine’s Growth Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~77.98% of the total shareholding. Woodbridge Co., Ltd. and RBC Dominion Securities, Inc., hold a maximum stake in the company at ~­­­68.99% and ~1.47%, respectively.

1.4 Key Metrics:

The company reported decent revenue growth in Q1 2023, owing to a surge in revenue from the Big 3 segment, which includes Legal Professionals, Corporates, and Tax & Accounting Professionals. Furthermore, its operating margin figures outperform the industry median, which is a significant plus. These rising numbers helped the company generate rising free cash flows, demonstrating its resilience and agility.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of the company’s recent activities, such as divesting its stake and dividend distribution.

2.2 Insights on Q1 2023 Financial Performance:

Section 3: Key Risks, Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~1.48% and ~1.06% over the last 1 month and 3 months respectively. Moreover, the stock is trading above the average 52-week high price of CAD 180.93 and 52-week low price of CAD 124.03 providing an opportunity to ride the trend. Thomson Reuters Corp. (TSX: TRI) was last covered on 11^th May 2023.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June14, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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