Q: WHY IS TRI CONSTANTLY GOING DOWN WHILE THE REST OF THE MARKETS ARE INCREASING
5i Research Answer:
TRI has had less-than-perfect numbers and showed a deceleration in growth. This resulted in several broker downgrades, negative investment sentiment and a resulting weak share price. It is still viewed as 'expensive' at 33X earnings. Still, it has an excellent long term history. The stock is up 200% in the past decade. We think it has recovery potential but does need to execute on earnings. 10% to 15% earnings growth is still expected.