2023-08-07 09:36:17 ET
Clarivate ( NYSE: CLVT ) was downgraded to "Underperform" from "Neutral" by analysts at BofA Securities, saying that the company won't have meaningful sales acceleration until 2024.
The bank's research and rating arm also cut the price target on CLVT to $6 from $10 and added that it sees downside risk and has "reduced confidence" in the pace of the company's three-year turnaround plan.
"In our view, near-term macro-related headwinds are likely to push out meaningful sales acceleration to at least 2024. We are also concerned that its new product initiatives will take longer than planned to gain traction and potentially require higher than expected investment," BofA analyst Heather Balksy wrote in an August 7 report.
"We assume 2023E organic growth is weak, but de-risked; we model +0.7%. Without much visibility it is difficult to fully underwrite CLVT’s 4.5/6% 2024/25 organic sales targets. We are at +3/4.5%E," Balksy added.
BofA also said its Academia & Government unit will take at least a few quarters to materially boost total organic sales.
Quant has a "Hold" rating, while Wall Street and SA authors have a "Buy."
Shares of the company have fallen 20.7% so far this year and 53.2% in the last 12 months.
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BofA sees downside risk to Clarivate's 3-year turnaround plan; cuts rating and PT