Oppenheimer analysts provided their outlook on Clarivate Plc (NYSE:CLVT) ahead of the upcoming Q2 earnings, expecting the company to deliver on the 5.5% organic growth guidance driven by improved pricing, retention, and cross-sell.
However, the analysts stated that they monitor transactional revenues in the second half of 2022 given the potential of an economic slowdown. Separately, FX headwinds could also weigh on revenues given exposure to EMEA (approximately 30% of revenues) and Asia (approximately 21% of revenues).
The analysts lowered their 2022/2023 EPS estimates to $0.84/$1.00, below the Street estimates of $0.90/$1.07, and reduced their price target to $18 from $23. However, the analysts reiterated their outperform rating given the defensive business model, longer-term secular trends, and benefit from the One Clarivate initiative.