William Blair analyst Andrew Nicholas has maintained their neutral stance on CLVT stock, giving a Hold rating yesterday.
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Andrew Nicholas’s rating is based on a combination of factors, including Clarivate’s recent financial performance and market conditions. The company reported second-quarter revenue that exceeded expectations, with notable growth in sectors such as academia, government, life sciences, and healthcare. This led to better-than-expected adjusted EBITDA and EPS figures. However, despite these positive results, Clarivate’s stock price fell, likely due to the lack of significant updates on the company’s strategic review.
While there are signs of improvement, such as a slight increase in recurring revenue and a return to growth in certain segments, challenges remain. The academic and government sectors are under pressure from reduced U.S. federal spending and potential budget cuts in higher education. Additionally, the life sciences sector faces headwinds from constrained commercialization budgets among pharmaceutical clients. These mixed signals contribute to the Hold rating, as the company shows potential but also faces ongoing uncertainties.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $4.50 price target.