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Investing.com - TD Cowen has reduced its price target on Charles River Laboratories (NYSE:CRL) to $197.00 from $205.00 while maintaining a Buy rating on the stock. The new target still represents potential upside from the current price of $168.05, with InvestingPro data showing analyst targets ranging from $155 to $211.
The research firm’s adjustment follows Charles River’s strategic review update, which indicates that a full Manufacturing sale is unlikely to occur.
TD Cowen notes that Charles River’s Discovery and Safety Assessment (DSA) revenue growth will face challenges in 2026, with the base case scenario projecting revenue decline, estimated at approximately -1.4%. This aligns with recent performance trends, as InvestingPro data shows the company’s revenue declined by 0.92% over the last twelve months.
Despite these near-term headwinds, the analyst observes that the broader environment appears to be improving, citing increased proposal activity and biotech funding as positive indicators that could lead to better book-to-bill ratios.
TD Cowen concludes that despite less meaningful strategic actions than perhaps anticipated, the risk/reward profile for Charles River Labs remains favorable to the upside.
In other recent news, Charles River Laboratories reported its third-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.43, compared to the forecasted $2.34. Additionally, revenue exceeded predictions, reaching $1 billion. Despite these positive financial results, concerns over organic revenue decline and operating margin contraction have been noted. In another development, the research firm Baird upgraded Charles River Labs from Neutral to Outperform. Baird also raised its price target for the company to $199.00 from $178.00, citing long-term growth potential. However, the firm acknowledged that Charles River Labs did not have a strong quarter and faces potential volatility in the near term. These developments highlight significant factors for investors to consider.
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