Clarivate (CLVT): Evaluating Valuation After Raised Guidance and Stronger Q3 Earnings

Clarivate (CLVT) just posted third quarter results, narrowing its net loss and showing sales growth compared to last year. The company also raised its full-year revenue outlook, which is encouraging for investors tracking its turnaround.

See our latest analysis for Clarivate.

After a tough start to the year, Clarivate’s share price has regained some momentum, rising nearly 3% in the past week after management delivered better-than-expected third quarter earnings and lifted their full-year sales outlook. Despite this recent boost, the 1-year total shareholder return sits at -22%, with the 3- and 5-year numbers still deep in the red. This shows the turnaround remains a work in progress, but recent developments are fueling fresh investor optimism.

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With shares still trading well below analyst targets and recent progress fueling optimism, is Clarivate an undervalued turnaround play, or are markets already factoring in the company’s future growth prospects?

Most Popular Narrative: 27% Undervalued

With Clarivate trading at $3.58 compared to the most popular narrative fair value of $4.93, the gap has caught investor attention. The widely followed consensus sees significant upside, but intriguing shifts in pricing power and customer demand could be shaping sentiment.

Rapid expansion and adoption of AI-driven product innovation across all segments (including new AI-powered analytics in Web of Science, Derwent, and Cortellis) enhances product differentiation and workflow integration, driving higher pricing, customer retention, and potentially expanding gross margins.

Read the complete narrative.

Want to know what’s fueling this bullish take? One forecast underpins the narrative: aggressive improvements to profit margins and future earnings that few expect from a turnaround. Curious how that stacks up against the status quo? The blueprint for this fair value hides key growth and margin leaps. Dive in to see what makes this scenario stand out.

Result: Fair Value of $4.93 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing budget pressures in universities and rapid shifts in technology could easily disrupt Clarivate’s turnaround narrative in the months ahead.

Find out about the key risks to this Clarivate narrative.

Build Your Own Clarivate Narrative

If your perspective differs from the consensus or you prefer to dig into the numbers yourself, you can quickly build your own outlook in just minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Clarivate.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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