Charles River Labs (CRL): Assessing Valuation After Analyst Upgrade, Earnings Beat, Divestitures, and $1B Buyback Announcement

Charles River Laboratories (CRL) caught the market’s eye following Baird’s recent upgrade. The company also reported an earnings beat, announced asset divestitures, and rolled out an ambitious $1 billion buyback plan.

See our latest analysis for Charles River Laboratories International.

After a rocky year, Charles River Laboratories International is showing signs of renewed momentum. While its 1-year total shareholder return is down 22%, the last 90 days brought a 12.8% share price rebound, likely energized by better-than-expected earnings and bold portfolio shakeups. Management’s decision to divest underperforming businesses and roll out a fresh $1 billion buyback suggests a sharper focus on core strengths, with investors taking note of these strategic pivots.

If recent buyback plans and turnarounds caught your attention, you might want to check out other healthcare stocks making waves: See the full list for free.

With analyst upgrades and buyback headlines grabbing attention, the key question remains: Is Charles River Laboratories actually undervalued at current levels, or has the recent rally already priced in any potential upside?

Most Popular Narrative: 10.1% Undervalued

Charles River Laboratories' most widely followed narrative assigns a fair value of $186.87, noticeably above the last close price of $168.05. This implies further upside if the projections materialize. This valuation reflects consensus around ongoing recovery catalysts, operational streamlining, and improving sector trends.

The stabilization and gradual improvement in global biopharma and biotech demand, coupled with an aging global population and increased healthcare spending, are expected to drive sustained recovery and eventual growth in Charles River's core CRO revenues as client R&D pipelines expand and previously delayed projects resume. This could positively impact long-term revenue visibility and growth.

Read the complete narrative.

Want to know the math powering that optimistic target? Behind this narrative are bold bets on profitability, margin expansion, and a future price multiple that could rival industry leaders. Which assumptions move the needle most? Click through to see which financial levers might actually justify this higher valuation.

Result: Fair Value of $186.87 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent client shifts toward non-animal testing and ongoing pricing pressure from global CRO competitors could still challenge Charles River's ambitious recovery outlook.

Find out about the key risks to this Charles River Laboratories International narrative.

Build Your Own Charles River Laboratories International Narrative

If you want to dig into the data yourself or believe a different story is unfolding, you can easily build your own view in just a few minutes with our tools, and Do it your way.

A great starting point for your Charles River Laboratories International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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