Jefferies cuts Clarivate to Hold, warns on slower growth path

Published 18/07/2025, 16:46
© Reuters.

Investing.com -- Jefferies downgraded Clarivate to Hold ahead of second-quarter results, citing uncertainty around the company’s ability to return to sustained growth and a more cautious macro and funding environment.

The firm said that while Clarivate’s valuation remains attractive, it now expects revenue in 2026 to be roughly flat compared to 2025, with risks building from potential U.S. government funding cuts to the National Institutes of Health and higher education, as well as competitive pressure in its intellectual property business from AI tools.

Clarivate shares have rallied off earlier lows, but Jefferies sees limited near-term catalysts and lowered its price target to $4.50 from $5.20.

Elsewhere in the information services sector, Jefferies expects strong second-quarter results from S&P Global, driven by outperformance in Ratings and Indices, which could prompt a full-year guidance raise.

“Despite attractive valuation, we downgrade CLVT to Hold on a more uncertain outlook for when growth will return to low single digit levels. Into 2Q earnings, we believe SPGI likely beats on strength in Ratings and Indices, leading to a full year guidance raise,” analysts at Jefferies wrote.

Verisk (NASDAQ:VRSK) is seen reporting in line to slightly better, with no major change to its outlook. For Gartner (NYSE:IT), the firm believes organic growth may be bottoming, though concerns remain around customer downsizing and softness in its lead-generation unit.

Jefferies maintained Hold ratings on FactSet, Verisk, Dun & Bradstreet (NYSE:DNB_old), and Gartner, and reiterated a Buy on S&P Global.

“At Gartner, organic growth is likely near a bottom, but some debate around downsell pressures persists,” analyst said on Gartner.

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