Clarivate Plc (CLVT): A Bull Case Theory

We came across a bullish thesis on Clarivate Plc on Valueinvestorsclub.com by Saltaire. In this article, we will summarize the bulls’ thesis on CLVT. Clarivate Plc’s share was trading at $4.1500 as of September 3^rd. CLVT’s forward P/E was 6.01 according to Yahoo Finance.

Clarivate PLC (CLVT) is a diversified information services company providing recurring data and analytics solutions to approximately 45,000 customers globally, operating across three core segments: Academia & Government (A&G), Intellectual Property (IP), and Life Sciences & Healthcare (LS&H). A&G contributes 52% of FY24 revenue with ~42.5% EBITDA margins, serving libraries, universities, and research institutions through brands like ProQuest and Web of Science.

The IP segment accounts for 32% of revenue with ~44% margins, offering patent, trademark, and lifecycle management services, while LS&H represents 16% of revenue with ~33% margins, supporting pharmaceutical and biotech firms via solutions like Cortellis. Despite market-leading positions, Clarivate has historically underperformed, driven by poorly integrated acquisitions, underinvestment in core products, and reliance on one-time transactional revenues (~19% of FY24 revenue).

Under CEO Matti Shem Tov, the company launched a Value Creation Plan (VCP) focused on recurring revenue growth, strategic disposals of non-core transactional streams, and operational improvements. Early results indicate stabilizing organic growth, improved subscription renewals, and strong recurring revenue retention (~92%). Clarivate initiated a formal review of strategic alternatives in February 2025, with private equity interest reported for the IP segment at an implied ~$4bn valuation (~12x FY25E EBITDA). The company’s SOTP analysis suggests upside of ~45%, with potential divestitures unlocking value and deleveraging the business from its current ~4.3x net leverage.

Clarivate benefits from highly embedded, mission-critical datasets and workflow solutions, serving top global universities, pharma, and R&D companies, with 64% of revenue from subscriptions and another 17% from recurring patent maintenance. The VCP, along with supportive activist and private equity investors, reduces execution risk and positions Clarivate for improved margins, sustainable free cash flow (~$300-380m FY25E), and potential rerating. Even in a standalone scenario, the company offers an attractive entry point, with catalysts including business unit sales and accelerating organic growth.

Previously we covered a bullish thesis on TTEC Holdings, Inc. (TTEC) by burnoutstory in May 2025, which highlighted the company’s undervaluation despite a $6.85 per share take-private offer, margin recovery, and strategic offshore and AI-driven efficiencies. The company’s stock price has depreciated approximately by 27% since our coverage. This is because the thesis did not fully play out amid macro pressures. Saltaire shares a similar bullish but emphasizes Clarivate’s strategic review, recurring revenue growth, and potential divestitures to unlock sum-of-the-parts value.

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Disclosure: None.