Clarivate (CLVT) has been in focus after redeeming US$100 million of 4.50% senior secured notes due 2026 using cash on hand, increasing share repurchases, and introducing its Clarivate Nexus AI academic assistant.

Despite Clarivate redeeming debt, stepping up buybacks and rolling out its Nexus AI assistant, the share price is US$1.84 with a 30 day share price return of a 41.77% decline and a 1 year total shareholder return of a 62.75% loss, pointing to fading momentum and ongoing market caution.

If this shift in sentiment has you looking beyond a single name, it could be a good moment to check out 58 profitable AI stocks that aren't just burning cash as potential alternatives in the AI space.

With Clarivate posting heavy share price losses over 1 and 5 years but trading at a sizeable gap to analyst targets and intrinsic estimates, is the market missing something here, or already factoring in any future recovery potential?

Most Popular Narrative: 60.1% Undervalued

Clarivate's most followed narrative flags a fair value of $4.61 against a last close of $1.84, a wide gap that puts its long term cash flow potential under the spotlight.

Rapid expansion and adoption of AI driven product innovation across all segments (including new AI powered analytics in Web of Science, Derwent, and Cortellis) enhances product differentiation and workflow integration, driving higher pricing, customer retention, and potentially expanding gross margins.

Curious what kind of revenue mix, margin lift, and earnings path could support that valuation gap? The narrative leans on specific growth, profitability, and discount rate assumptions that you may want to review and pressure test for yourself.

Result: Fair Value of $4.61 (UNDERVALUED)

However, the narrative could easily be knocked off course if AI focused competitors win share more quickly or if Clarivate’s debt and funding needs constrain investment.

Build Your Own Clarivate Narrative

If you see the story differently, or simply prefer to weigh the inputs yourself, you can stress test the assumptions and Do it your way in just a few minutes.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Clarivate.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.