Clarivate (CLVT – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Heather Balsky from Bank of America Securities remains neutral on the stock and has a $6.00 price target.
Heather Balsky’s Sell rating on Clarivate’s stock (CLVT) stems from a combination of concerns regarding the recent goodwill impairment charge and the company’s overall financial performance. Clarivate announced a significant impairment charge in the fourth quarter related to write-downs in its Intellectual Property and Life Sciences & Healthcare segments, which signals that these assets are underperforming relative to initial expectations. This impairment, notable at 15% of the current market cap, follows a substantial $4.4 billion impairment in 2022, highlighting continued valuation challenges.
Furthermore, Clarivate’s sales have been lackluster, prompting skepticism about the speed and effectiveness of the company’s turnaround efforts. The refinancing of a substantial term loan also raises flags about the company’s debt management and financial stability. Considering these factors, Balsky’s analysis points towards a prolonged recovery period for Clarivate, which justifies the Underperform rating and a price objective that reflects a cautious outlook on the stock’s potential.
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Clarivate (CLVT) Company Description:
Clarivate Analytics Plc provides trusted insights and analytics to accelerate the pace of innovation. Its solutions include scientific and research, patent intelligence and compliance standards, pharmaceutical and biotech intelligence and trademark, domain and brand protection. The company product portfolio includes Life Science, Web of Science, Cortellis, Derwent, CompuMark, MarkMonitor and Techstreet. It helps clients to reduce the time from new ideas to life changing innovations. The company was founded in 1864 and is headquartered in St. Helier, Jersey.
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