Update shared on 29 Nov 2025
Analysts have moderately increased their average price target for Charles River Laboratories International, reflecting recent upgrades and cautious optimism regarding stabilizing growth trends and improved prospects in the company's core segments.
Analyst Commentary
Recent Street research on Charles River Laboratories International reflects a mix of optimism and caution regarding the company’s future outlook. Several analysts have upgraded their recommendations and increased price targets, while others express restraint, highlighting both growth opportunities and risks associated with execution and end-market trends.
Bullish Takeaways- Bullish analysts are raising price targets, citing improved demand in core preclinical and contract research organization business segments.
- Upgrades to Outperform or Buy ratings reflect confidence in the company’s ability to recover preclinical spending and manage strategic reviews effectively.
- There is optimism that stabilizing growth trends have led to sequential improvements in bookings, especially in discovery and safety assessment services.
- Positive survey feedback suggests stable end-market demand for discovery and toxicology services into 2025 and 2026, with the potential for strategic actions to enhance shareholder value.
- Bearish analysts note that some price targets have been lowered due to challenges in sustaining revenue growth, particularly in the DSA (Discovery and Safety Assessment) segment heading into 2026.
- There is skepticism regarding the likelihood of a full manufacturing segment sale, which implies fewer near-term catalysts for valuation upside.
- Analysts remain cautious about sequential deceleration in healthcare utilization trends, which could weigh on managed care and adjacent service companies.
What's in the News
- Charles River authorized a new share repurchase program, allowing up to $1 billion worth of its common stock to be bought back by the company (Buyback Transaction Announcements).
- The company revised its earnings guidance for 2025, indicating a reduction in expected revenue growth and lower GAAP EPS estimates compared to prior forecasts (Corporate Guidance: Lowered).
- Charles River entered a strategic collaboration with The Francis Crick Institute to accelerate antibody-drug conjugate (ADC) development using integrated drug discovery and profiling technologies (Strategic Alliances).
- The Chief Financial Officer, Flavia H. Pease, will step down effective September 29, 2025. Michael G. Knell has been appointed interim CFO as the company conducts a search for a permanent successor (Executive Changes: CFO).
- Collaboration with X-Chem, Inc. was announced to enhance hit identification capabilities, providing clients access to a proprietary library of over 15 billion compounds and advanced early discovery technologies (Client Announcements).
Valuation Changes
- Fair Value Estimate remains unchanged at $188.93, indicating no revision to projected intrinsic value.
- Discount Rate has decreased slightly from 8.45% to 8.44%, reflecting a marginally lower perceived risk.
- Revenue Growth Projection is unchanged at 2.72% per year.
- Net Profit Margin has increased slightly from 11.64% to 11.65%.
- Future P/E Ratio estimate is unchanged at 20.40x.
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