Clarivate: Deleveraging And FCF Growth Support A Re-Rating
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Mandela Amoussou1.79K FollowersFollow5ShareSavePlay(20min)CommentsSummaryClarivate is executing a turnaround, with management focusing on debt reduction, divestitures, and share buybacks after years of value-destructive acquisitions.Q4 and FY25 results marked the first time CLVT met initial full-year guidance since 2019, with sequential organic ACV growth and 88% recurring revenue.2026 guidance projects organic ACV growth of 2–3%, adjusted EBITDA margin near 43%, and FCF around $400M, despite headline revenue decline from low-margin business exits.My 12-month price target for CLVT is $5.50, implying ~100% upside, as the market may reward ongoing deleveraging and improved business mix.peshkov/iStock via Getty Images Clavirate Plc (CLVT) surged a week ago on Q4 earnings, drawing long-sought positive attention from the market at a time when software is selling off, coupled with AI CAPEX fears and unrest in the MiddleThis article was written byMandela Amoussou1.79K FollowersFollowI started out as a crypto investor a decade ago and remain deeply active in the crypto space. I cover Bitcoin miners, digital asset treasuries, and crypto ETFs majorly, but I also seek alpha in tech equities, especially in emerging sectors like quantum computing and orbital intelligence. I have initiated coverage as a first analyst here on Seeking Alpha to cover names like SealSQ (LAES), Rezolve AI (RZLV), among others, with Buy ratings. Several of these tickers have delivered double to triple digit returns since initial coverage. I try to go beyond surface level metrics and headline numbers. I focus on fundamentals, capital allocation, momentum, market structure, and management execution. And most of all, your comments matter. Even the critical comments are very much welcome, as they improve my work and sharpens the analysis. I value thoughtful disagreements. I look forward to learning and compounding together in the market. Best, MandelaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CLVT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.