UPDATE: FBR Capital Markets Initiates Coverage on Thomson Reuters on Multiple Positive Factors

In a report published Thursday, FBR Capital Markets analyst William Bird initiated coverage on Thomson Reuters Corporation (NYSE: TRI) with an Outperform rating and $44.00 price target.In the report, FBR Capital Markets noted, “We are initiating coverage of Thomson Reuters Corporation (TRI) with an Outperform rating and a 12-month price target of $44 per share. We see TRI as an investment in improved execution through simplification strategies (e.g., products, infrastructure, and organization), financial and risk (F&R) margin improvement (e.g., EBITDA margin should approach 30% in 2015 versus a current 25%), and an eventual cyclical turn at F&R. TRI offers attractive idiosyncratic value drivers in a media and professional information landscape where cost improvement stories are harder to come by and are generally in the later innings. New management is showing precision in identifying and trimming the excess in this complexly organized company built through many acquisitions. Although the stock is not cheap, we believe TRI is under-earning, lives in an expensive neighborhood, and is experiencing an improving rate of change in its business.”Thomson Reuters closed on Wednesday at $38.01.