Goldman Sachs Thomson Reuters (TRI.US): New CFO Stresses Market Share Gains; Rebuilt CoCounsel Shows Agentic AI Differentiation
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Abstract
Following a September 17 meeting in New York with Thomson Reuters CEO Steve Hasker and new CFO Gary Bischoping, and a live demonstration of the rebuilt CoCounsel Legal, Goldman Sachs reiterates Buy ratings: 12-month targets of $120.00 for TRI (18.4% upside from $101.31) and C$166.00 for TRI.TO (17.2% from C$141.64). Management emphasized faster product innovation, market-based pricing and tighter product/sales execution to gain share, with organic product development and AI the top capital-allocation priority. The company reiterated its 2026 target of roughly 100bp of EBITDA margin expansion to 40.1%; $40mn of productivity initiatives build through Q4 and into 2027.
The rebuilt CoCounsel—released to all existing customers in June and generally available in August—differentiates through a more flexible agentic architecture, native access to Westlaw and Practical Law content, and trust and transparency embedded throughout. New sales and contractual pricing uplifts are running above historical levels. In-house Thomson models carry inference costs well below leading frontier models, supporting simple subscription pricing without usage fees, while enterprise legal expands the addressable market. The $120 target applies 22.0x to NTM+1-year EPS of $5.45, versus the information services median 16.7x; the C$166 target uses USD/CAD 1.3842.
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