Clarivate Plc (CLVT) Downgraded Amid Turnaround Challenges

Clarivate Plc (NYSE:CLVT) is among the best fundamentally strong penny stocks to buy according to analysts. According to TheFly, Morgan Stanley downgraded Clarivate Plc (NYSE:CLVT) to Underweight from Equal Weight and reduced the price target to $3 from $5 on December 17. The firm believes that the company’s share will continue to underperform as its turnaround “continues to struggle.” From tight budgets to intense competition, the company’s strategic review is unlikely to generate significant value, the analyst says in a research note.

The leading bank noted guidance for flat-to-low-single-digit growth for Clarivate Plc (NYSE:CLVT) and limited operating leverage potential, which would result in low-single-digit adjusted EBITDA growth.

Morgan Stanley emphasized the funding pressures across key sectors, including pharmaceutical, academic, and government, as likely negative drivers under the current Administration, which could impact the company’s overall recovery. The competitive pressures arise from the accelerating AI, which could enhance the competitor’s capabilities to ingest data and compete within the company’s markets, the investment bank concluded.

Earlier on December 4, Ashish Sabadra, an analyst at RBC Capital, reaffirmed a ‘Buy’ rating on Clarivate Plc (NYSE:CLVT), setting a price target of $5. This reflects a potential upside of nearly 43% from the current price.

Overall, Clarivate Plc (NYSE:CLVT) has mixed analyst sentiment, with 30% of analysts covering the stock assigning a Buy rating and slightly more than half of the analysts holding a cautious view, as of December 19. The range between the high and low consensus price targets is also wide, with the consensus 1-year median price target of $4.20 implying about 20.34% upside.

Clarivate Plc (NYSE:CLVT) is a United Kingdom-based information services provider operating through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. Incorporated in 1864, the company serves universities, government agencies, and other professional services organizations.

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