UBS Analyst Maintains Sell Rating on Thomson Reuters

Management at Thomson Reuters (TRI) said that the recent turmoil in financial markets has “raised the potential” that revenue growth will slow next year.

In reference to troubled times at large financial institutions that buy data and equipment from Thomson, UBS analyst Jeffrey Fan wrote:

We continue to believe that growth [in the markets division] will be approximately flat in Q4 given the lag factor between job cuts and cancellations.

Mr. Fan sees increased downside risks to the consensus earnings estimates for 2009.

A report in the Wall Street Journal on Thursday said that Thomson Reuters has implemented a hiring freeze in its markets division and tightened its travel policy because of the crisis engulfing Wall Street.

Mr. Fan maintains his "sell" rating and $28 price target on the stock.