Update shared on27 Aug 2025
Fair value Increased 1.97%Charles River Laboratories’ price target was raised to $172.07 following a strong Q2 beat, renewed demand stability, and valuation support from strategic review and activist involvement, partially offset by lingering uncertainty into late 2025.
Analyst Commentary
- Q2 results exceeded expectations with sales 5% above consensus and a significant adjusted EPS beat, indicating improving operational performance.
- Demand for Charles River’s services is stabilizing following previous volatility, contributing to more favorable outlooks.
- Bullish analysts see management’s conservative guidance for the second half of 2025 as presenting upside risk, while they view 2026 estimates as achievable.
- The ongoing strategic review process and activist involvement are seen as supporting the share price by providing a valuation floor.
- Despite short-term improvements, some bearish analysts remain cautious on the stock due to lingering uncertainties for the latter half of 2025 and into 2026.
What's in the News
- Joined the EASYGEN Consortium to accelerate and automate CAR-T cell therapy manufacturing, increasing affordability and access in Europe.
- Lowered 2025 earnings guidance; expects negative organic revenue growth and slightly reduced GAAP EPS.
- No shares repurchased in the most recent tranche; total of 2,567,326 shares (5.01%) repurchased for $450.72 million under existing buyback.
- Exploring a partnership with BioTech Social to allow incubator and accelerator program participants to use a crowdfunding platform for raising up to $5 million annually.
- Entered a plasmid DNA CDMO agreement with Elly's Team to support Phase I gene therapy trial; leveraging established gene therapy capabilities and advisory services.
Valuation Changes
Summary of Valuation Changes for Charles River Laboratories International
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $168.75 to $172.07.
- The Consensus Revenue Growth forecasts for Charles River Laboratories International has risen slightly from 2.6% per annum to 2.7% per annum.
- The Net Profit Margin for Charles River Laboratories International remained effectively unchanged, moving only marginally from 11.27% to 11.39%.
Disclaimer
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