Further, BMO noted that the positive sales results of the financial & risk unit for the ninth consecutive quarter "bodes well for the organic revenue growth outlook."
In addition, the brokerage expects the proceeds from the IP & science divestiture to finance additional buybacks. During the second quarter, the company bought back 6.3 million shares for $258 million.
"We continue to forecast mid-single digit EBITDA growth through 2017E," analyst Tim Casey wrote in a note.
Meanwhile, the company's second-quarter results were slightly below expectations. "Revenue from ongoing businesses declined 1 percent to $2.769 billion (consensus $2.846 billion). Adjusted EPS were $0.50 versus $0.49 consensus and $0.45 last year," the analyst said.
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"For 2016, the company continues to expect low single-digit revenue growth of 2–3 percent excluding financial & risk's recoveries revenues, adjusted EBITDA margin of 27.3–28.3 percent (consensus 28.1 percent), and free cash flow of $1.7 billion–$1.9 billion (includes IP&S)."
Moreover, the analyst cut his 2016 EPS estimate to $1.99 from $2.04, but raised 2017 estimate to $2.28 from $2.24.
Casey, who has an Outperform rating on the stock, raised his price target to $60 from $57.50.
Shares of Thomson Reuters closed Friday's trading at $42.11.
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