Goldman Sachs Begins Clarivate Analytics With Bullish Rating, Says Recent Improvement Could Drive Growth

Clarivate Analytics PLC CCC has recently made improvements to its offering, which could drive acceleration in organic revenue growth over the next couple of years, according to Goldman Sachs.

The Analyst

Goldman Sachs’ George Tong initiated coverage of Clarivate Analytics with a Neutral rating and a price target of $18.

The Thesis

Clarivate Analytics has taken several initiatives, including modernization of the user interface, development of additional value-added analytics, pricing initiatives and salesforce optimization, which could result in an acceleration in its organic revenue growth from low-single digits to mid-single digits over the next one or two years, Tong said in the initiation note.

He expects the revenue growth acceleration to be accompanied by healthy margin expansion, due to the company’s efficiency initiatives and operating leverage.

Clarivate Analytics is already a leader in the intellectual property and scientific data and analytics industry and offers solutions that are essential for its customers. This has resulted in the company’s higher than 90% customer retention rates, Tong mentioned.

Despite these positives, the company has been improving its product and go-to-market strategies, the analyst added.

Price Action

Shares of Clarivate Analytics were trading flat at the time of publication Wednesday.