Clarivate has been downgraded from a buy to a hold rating because its organic growth trends have turned negative, and the anticipated recovery is not meeting expectations.
Clarivate's Q3 2025 results revealed flat revenue, indicating underlying business weakness, particularly in its Intellectual Property (IP) and Life Sciences & Healthcare divisions. While the company has shown positive signs such as Annual Contract Value (ACV) growth, a favorable subscription mix, and traction with new AI-powered products, these positive developments are insufficient to offset the continued underperformance of its core segments.
Despite some promising initiatives, the overall momentum for Clarivate's recovery is lagging, leading to a revised investment outlook. The company's efforts to innovate and adapt have yet to translate into the sustained growth needed to justify a more optimistic rating.