Clarivate Earnings: Incremental Progress as Expected; New CEO Announced

No-moat Clarivate’s second-quarter results were broadly in line with FactSet consensus and management guidance. As expected, performance was slightly better than the first quarter of fiscal 2024 but remained weak, in absolute terms. More of a surprise was the appointment of a new CEO, Matti Shem Tov, effective Aug. 9. Shares were down around 4% intraday. We think the market is assuming that a new CEO confirms the current strategy and is not going to be successful in resurrecting revenue growth. We don’t expect to make a material change to our $7.80 fair value estimate. At current levels, the shares look undervalued, but we see no catalyst in the near term.