Piper Sandler has raised its rating on Claritev (CTEV, Financial) from Neutral to Overweight, setting a new price target of $44, up significantly from the previous $19. This decision comes in light of Claritev's strong financial performance, including better-than-expected Q1 revenue and adjusted EBITDA. The company's three-year contract renewal with Elevance Health and its promising strategic partnerships contribute to a positive outlook, diminishing concerns over customer concentration. Piper Sandler now expresses greater confidence in Claritev meeting its projected 2025 goals and maintaining growth into 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Claritev Corp (CTEV, Financial) is $13.67 with a high estimate of $21.00 and a low estimate of $10.00. The average target implies an downside of 48.74% from the current price of $26.66. More detailed estimate data can be found on the Claritev Corp (CTEV) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Claritev Corp's (CTEV, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Claritev Corp (CTEV, Financial) in one year is $38.51, suggesting a upside of 44.45% from the current price of $26.66. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Claritev Corp (CTEV) Summary page.
CTEV Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Claritev Corp (CTEV, Financial) reaffirmed its full-year guidance, indicating confidence in its financial outlook.
- The company reported a significant increase in pipeline expansion, up 127% quarter over quarter.
- Average deal size has grown, with a 35% increase in average annual contract value quarter over quarter.
- Claritev Corp (CTEV) successfully renewed a top 20 client contract valued at $13 million annually for five years.
- The company launched six new product enhancements in Q1, accelerating innovation across its product set.
Negative Points
- Q1 2025 revenue was down 1.4% from the previous year, indicating a decline in overall sales.
- Analytics-based revenue declined 4.2% from last year, showing weakness in this segment.
- The company experienced a 7% sequential decrease in total first-quarter bill charges.
- Claritev Corp (CTEV) reported a net cash use of $30.1 million for Q1 2025, indicating cash flow challenges.
- The company's net debt leverage ratio remains high at 8.1 times, suggesting significant financial leverage.
