Clarivate Is In Early Stages Of Turnaround, BofA Says

Clarivate Plc’s CLVT turnaround strategies are likely to lead to accelerated growth and more consistent performance, according to BofA Securities.

The Clarivate Analyst: David Chu initiated coverage of Clarivate with a Buy rating and $28 price target. 

The Clarivate Takeaways: The company’s shares are trading at a discount of around 25% to information services peers, Chu said in the initiation note.

This discount will narrow as Clarivate delivers its targets of 6%-8% organic revenue growth and margin expansion, the analyst said. 

“Clarivate has a strong position as the leading provider of data & analytics to the sciences and intellectual property (IP) markets. Its offerings are mission-critical and deeply embedded in client workflows, and its breadth of data and end-to-end offerings provide competitive advantage,”he said. 

“These factors drive a strong business model with highly recurring revenue, 90%+ retention, and strong/scalable margins.” 

CLVT Price Action: Shares of Clarivate were down 0.29% at $22.64 at last check Monday.