Benzinga | Aug 16, 2021 12:39PM EDT

Clarivate Is In Early Stages Of Turnaround, BofA Says

Clarivate Plc's (NYSE: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.