RBC Capital Markets raised its price target on Thomson Reuters to $124 from $121, citing the company’s in-house AI model’s benefits in legal and tax products. RBC said the in-house large language model (LLM) delivers results comparable to top “frontier” models, but with lower latency and lower computing cost. This matters because AI features get pricey at scale, as every extra prompt consumes processing power, which shows up as cost of goods sold. Running more workload on its own cheaper model allows Thomson Reuters to roll out more “agentic” tools without handing margin control to third-party model pricing. RBC also highlighted upwardly revised 2026 revenue guidance and said the company’s margin-expansion plan remains on track, shifting the story from “AI disruption risk” toward “AI-driven operating leverage.” For shareholders, the key is whether AI can raise usage and retention without eating profits, as a cheaper, faster in-house LLM can lower the per-query cost of shipping AI across Westlaw, Practical Law, and tax tools. If that holds, analysts can justify valuations more on steady earnings growth from software-like economics, and less on sentiment swings tied to new frontier model announcements.