TSX futures tick up after index logs fresh record high close
Investing.com - Wolfe Research initiated coverage on Clarivate Plc (NYSE:CLVT) with a Peerperform rating and a year-end 2026 fair value range of $4-5. According to InvestingPro analysis, the company currently appears undervalued based on its proprietary Fair Value model.
The research firm noted that Clarivate stock has underperformed this year, falling 17.5% year-to-date compared to the S&P 500’s 9.8% gain and the Wolfe Business and Information Services index’s 5% increase.
Wolfe Research’s CY25, CY26, and CY27 EBITDA estimates of $955 million, $989 million, and $1,036 million are slightly below consensus estimates of $987 million, $997 million, and $1,030 million, respectively. The company’s current EBITDA stands at $956.7 million, with impressive gross profit margins of 66%.
The firm highlighted that Clarivate is currently trading at 6.1x next-twelve-months EBITDA, below its historical 1-, 3-, and 5-year median multiples of 6.6x, 8.7x, and 11.1x, representing a 16.1% discount to the market multiple.
Wolfe Research acknowledged Clarivate’s strong market position with limited competition and potential for organic growth through its value creation plan, while also noting risks including tighter university or healthcare budgets, AI disintermediation, and relatively high net leverage.
In other recent news, Clarivate Plc reported second-quarter revenue that exceeded analyst expectations. The company generated revenue of $621.4 million, surpassing the consensus estimate of $587.36 million. Despite this revenue beat, Clarivate posted a loss for the period, reporting a loss of $0.11 per share, which fell short of analysts’ expectations for a $0.17 profit. These developments highlight the company’s mixed financial performance for the quarter. The earnings report has drawn attention from investors and analysts alike, given the discrepancy between the revenue success and the earnings loss. Such financial results are crucial for investors to assess the company’s current standing. The recent developments provide insight into Clarivate’s operational challenges and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.