Clarivate’s Mixed Performance and Strategic Shifts Lead to Hold Rating

William Blair analyst Andrew Nicholas has maintained their neutral stance on CLVT stock, giving a Hold rating on April 24.

Andrew Nicholas has given his Hold rating due to a combination of factors, including Clarivate’s better-than-expected first-quarter performance and the reaffirmation of its full-year guidance. The company’s revenue exceeded both Andrew’s and consensus estimates, driven by strong results in the life sciences and healthcare, as well as intellectual property sectors. However, despite these positive results, recurring revenue growth was slightly below expectations, with subscription revenue showing some weakness.
While there was notable improvement in renewal rates, particularly in the life sciences and healthcare segment, transactional revenue experienced a decline. This decline is anticipated to continue as Clarivate shifts its focus towards recurring revenues. Additionally, the limited impact of U.S. federal government contracts on the company’s revenue provides some reassurance, but the overall mixed performance and strategic shifts contribute to the Hold rating, suggesting a cautious approach to the stock at this time.

In another report released on April 24, Citi also maintained a Hold rating on the stock with a $4.25 price target.

Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CLVT in relation to earlier this year.