Thomson Reuters Doubles Down on AI as CIBC Maintains Bullish Stance Despite Price Target Trim
In a significant vote of confidence for Thomson Reuters' (NASDAQ: TRI) strategic direction, CIBC Capital Markets analyst Robert Bek has reaffirmed an Outperform rating on the stock. The endorsement comes despite a revised price target, lowered from $198 to $183, reflecting broader market adjustments rather than company-specific concerns.
The analyst's stance aligns with Thomson Reuters' aggressive expansion into artificial intelligence. On January 16, the company launched ONESOURCE Sales and Use Tax AI, a software application designed to automate critical sales and use tax compliance processes for U.S. businesses. This move solidifies its footprint in the high-demand regulatory technology sector.
Perhaps more notably, the company is making waves in the legal domain. Following its U.S. debut last year, Thomson Reuters introduced its generative AI legal assistant, CoCounsel Legal, in the United Kingdom on January 26. The UK version boasts deeper integration with the company's vast proprietary content archives within its flagship Westlaw and Practical Law platforms. This represents one of the firm's most substantial advances in applying agentic AI—systems that can perform multi-step tasks autonomously—to professional workflows.
"This isn't just about adding a chatbot to a search engine," said industry analyst Michael Vance. "Thomson Reuters is leveraging its unparalleled legal and tax databases to build AI tools that are genuinely actionable for professionals. It's a classic 'moat' strategy, and it positions them uniquely against pure-play tech competitors."
The strategic pivot is seen as essential for the content and technology giant, which operates across the Americas, EMEA, and Asia Pacific through segments including Legal Professionals, Corporates, and Tax & Accounting. By embedding AI directly into the tools used by lawyers, accountants, and compliance officers, Thomson Reuters aims to transition from an information provider to an indispensable workflow partner.
However, the ambitious transformation draws mixed reactions. Sarah Chen, a portfolio manager at a rival firm, offered a more critical take: "Let's be real—the price target cut speaks volumes. While the AI narrative is flashy, execution risk is high, and monetizing these tools in a saturated professional software market won't be easy. Investors are right to question whether this is genuine innovation or just expensive marketing to keep up with the times."
Contrasting that view was David Miller, a veteran tax attorney: "As someone who has used their products for decades, the new AI features in ONESOURCE are a game-changer for my practice. It cuts down hours of manual review. For professionals drowning in regulatory complexity, this isn't a 'nice-to-have'—it's becoming essential infrastructure."
The company's focus on AI has also kept it on the radar of major investors. Thomson Reuters continues to rank highly among hedge fund holdings, often featured in lists of promising stocks within major indices like the QQQ.