William Blair analyst Andrew Nicholas has maintained their neutral stance on CLVT stock, giving a Hold rating on October 30.
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Andrew Nicholas has given his Hold rating due to a combination of factors surrounding Clarivate’s recent financial performance. The company’s third-quarter revenue exceeded expectations, primarily driven by higher-than-anticipated transactional revenues in the academia and government sector. However, this boost came from lower-margin sales, which resulted in only modest improvements in adjusted EBITDA and EPS.
Despite the revenue beat, the adjusted EBITDA margin fell short of projections, and recurring revenue growth decelerated. While management raised full-year revenue guidance due to favorable conditions, the overall growth outlook remains mixed, with recurring revenue and subscription growth slightly underperforming expectations. These mixed signals contribute to the Hold rating, as the company’s financial prospects present both opportunities and challenges.
In another report released on October 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $3.50 price target.