Update shared on 09 Nov 2025
Fair value Decreased 4.14%Analysts have lowered Clarivate's price target from approximately $5.14 to $4.93 per share. They cite concerns over budget constraints in key sectors, potential risks from artificial intelligence, and the company’s elevated leverage, despite its strong market position.
Analyst Commentary
Analysts have provided a nuanced perspective on Clarivate's outlook, highlighting areas of both strength and caution following the latest research coverage.
Bullish Takeaways
- Bullish analysts emphasize Clarivate's robust market share and position within its segments, noting limited direct competition.
- The company’s wide product offering and entrenched relationships with clients are viewed as supporting stable future revenue streams.
- Valuation remains within a reasonable range, with recent assessments placing fair value between $4 and $5 per share.
- Ongoing operational execution is seen as a key advantage, particularly in retaining large institutional customers in specialized verticals.
Bearish Takeaways
- Bearish analysts spotlight the risk of budget tightening in major customer bases including universities and healthcare providers, which could slow organic growth.
- Potential disruption from artificial intelligence and new technologies poses a threat to Clarivate’s traditional service lines and revenue predictability.
- The company’s elevated net leverage ratio remains a concern for some, potentially constraining future investments or shareholder returns.
- Sensitivity to sector-wide economic headwinds means execution on strategic initiatives will be critical to defending valuation in the future.
What's in the News
- Completed buyback of 34,823,885 shares, representing 5.11% of outstanding shares. The transaction totaled $149.47 million under the program announced in December 2024 (Key Developments).
- Raised 2025 earnings guidance. Projected revenues are now in the range of $2.42 billion to $2.45 billion, up from previous estimates (Key Developments).
- Signed a major agreement with the University of Melbourne to provide comprehensive library management and discovery solutions. The partnership incorporates AI-enhanced tools for teaching, research and decision-making (Key Developments).
- Launched beta of AI-powered Regulatory Assistant in Cortellis Regulatory Intelligence. This is designed to help regulatory professionals navigate global requirements efficiently with conversational AI, multilingual support and personalized features (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from approximately $5.14 to $4.93 per share. This reflects a modest reduction in fair value estimates.
- Discount Rate increased from 10.8% to 11.7%, indicating a higher perceived risk in the company’s future cash flows.
- Revenue Growth projections rose from 13.1% to 16.8%, suggesting renewed optimism for top-line expansion.
- Net Profit Margin saw a significant increase from 13.6% to 165.6% due to positive adjustments in profitability assumptions.
- Future P/E ratio fell sharply from 1167.9x to 88.0x, pointing to revisions in earnings expectations or more conservative valuation multiples.
Disclaimer
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