Clarivate Earnings: Shares Fall Despite In-Line Results; Shares Undervalued
No-moat Clarivate’s first-quarter results were broadly in line with FactSet consensus and management guidance. Nevertheless, shares fell 11% on the day. We surmise the market was hoping for better near-term indications of a revenue growth inflection. While performance remains challenged, this was in our expectations so we don’t expect to make a material change to our $7.80 per share fair value estimate. At current levels, the shares now look undervalued.