Clarivate (CLVT) is expected to see near-term headwinds across key segments in Q1 as it advances its value creation plan initiatives, RBC Capital Markets said, adding that the pressure masks underlying execution progress.

The investment firm said in a Monday note that it expects organic revenue to decline 1%, in line with consensus, as Clarivate continues executing its value creation plan, or VCP.

In the Intellectual Property segment, they forecast about a 4% organic decline due to tough year-over-year comparisons. Academia and Government should deliver stable growth of about 1%, while Life Sciences & Healthcare faces a similar about 1% headwind.

RBC forecast total revenue to decline 6.8% year over year to $554 million, compared with consensus expectations of a 4.2% decline to $569 million. It estimates A&G revenue at $276 million versus $290 million consensus, IP revenue at $188 million in line with consensus and LS&H revenue at $89 million versus $92 million consensus.

Adjusted earnings before interest, taxes, depreciation, and amortization are expected at $218 million with a margin of 39.3%, compared with consensus estimates of $227 million and 39.9%. Earnings per share estimate is $0.14, in line with consensus, the analysts said, adding that they expect the company to reiterate its 2026 guidance.

The company is scheduled to report its Q1 results before the market opens on Wednesday.

RBC has a sector perform rating and a $3 price target on Clarivate.

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