Clarivate (CLVT) Valuation in Focus After Earnings Beat, Upgraded Outlook, and Buyback Completion

Clarivate (CLVT) just published its latest quarterly results, showing a reduction in net loss along with improved per-share figures. The company also raised its revenue outlook for 2025 and concluded a sizable share buyback.

See our latest analysis for Clarivate.

Clarivate’s recent earnings update, upward revision of its 2025 revenue guidance, and completion of a sizable buyback offered glimmers of optimism. However, the momentum has not translated into the share price. Despite these signals, the stock has continued its slide, with a 1-year total shareholder return of -47.19% and a year-to-date share price return of -32.43%. This illustrates persistent negative sentiment and highlights the road ahead for a sustainable turnaround.

If market shifts like these have you curious about new opportunities, now’s a smart moment to broaden your investing horizons and discover fast growing stocks with high insider ownership

But after notable events such as earnings growth, increased guidance, and a completed buyback, the key question remains: is Clarivate trading at an attractive discount, or has the market already factored in future improvements?

Most Popular Narrative: 32.4% Undervalued

With Clarivate's most popular narrative valuing the company at $5.14, and the stock last closing at $3.48, the current price stands notably below where narrative-based analysis sees fair value landing. This sizable gap sets the stage for a closer look at what could be powering the narrative's conviction.

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.

Curious about what makes these projections so daring? This is more than just a routine growth story. The underlying forecast leans on aggressive profit turnaround and high-margin expansion. Want a peek at which future milestones analysts believe could change the game? Read on, because the numbers behind this fair value target may surprise you.

Result: Fair Value of $5.14 (UNDERVALUED)

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

However, ongoing cuts in education funding and rapid advances from AI-enabled competitors remain key challenges that could disrupt Clarivate’s path to recovery.

Find out about the key risks to this Clarivate narrative.

Build Your Own Clarivate Narrative

If you see things differently or want to dig deeper for yourself, you can craft your own Clarivate narrative in just minutes. Do it your way

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

Looking for more investment ideas?

Make smarter moves with a few minutes today. The right screen could help you spot tomorrow’s winners before the crowd. Don’t let fresh opportunities pass you by.

• Tap into the next wave of artificial intelligence by checking out these 27 AI penny stocks with real momentum and potential for rapid growth.
• Capture strong yields for your portfolio and see which companies qualify as these 20 dividend stocks with yields > 3% promising steady income above 3%.
• Position yourself ahead of the curve in digital asset innovation and review these 82 cryptocurrency and blockchain stocks that are reshaping future finance.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com