Clarivate (CLVT) Valuation Revisited After Morgan Stanley Downgrade and Ongoing Turnaround Concerns

Morgan Stanley’s downgrade of Clarivate (CLVT) to Underweight puts a sharper spotlight on the company’s slow moving turnaround, rising AI driven competition, and tightening budgets across key customer groups that rely on its data platforms.

See our latest analysis for Clarivate.

The downgrade lands after a tough stretch for shareholders, with the share price at $3.41 and a year to date share price return of around negative 34 percent. The five year total shareholder return of roughly negative 89 percent shows how long the reset has been in play and why many investors now see any near term rallies as more about shifting risk perception than a clear growth inflection.

If Clarivate’s challenges have you reassessing your exposure to information and analytics names, this could be a good moment to explore other fast growing stocks with high insider ownership that might offer cleaner growth stories.

With shares trading at a steep discount to the average analyst target yet weighed down by years of value destruction, investors now face a key question: is Clarivate a contrarian bargain, or is the market correctly pricing in muted future growth?

Most Popular Narrative Narrative: 27.2% Undervalued

With Clarivate last closing at $3.41 versus a narrative fair value of $4.68, the valuation case hinges on a sharp earnings swing and aggressive buybacks.

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 how flat headline revenues can still underpin a higher valuation? This narrative leans on a dramatic profit turnaround, richer margins, and shrinking share count. Want to see how those moving pieces add up to that fair value gap?

Result: Fair Value of $4.68 (UNDERVALUED)

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

However, continued university budget pressure or faster than expected AI driven competition could still compress renewals and margins, which would undermine the undervaluation thesis.

Find out about the key risks to this Clarivate narrative.

Build Your Own Clarivate Narrative

If this perspective does not fully match your own or you prefer to dig into the numbers yourself, you can quickly build a personalized view in just a few 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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