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Investing.com - TD Cowen has maintained its Buy rating on Charles River Laboratories (NYSE:CRL) while raising its price target to $205.00 from its previous target. The stock, which has shown significant volatility with a 67% surge over the past six months according to InvestingPro data, currently trades around $170.
The research firm’s analyst Charles Rhyee expressed concerns about second-half business-to-business revenue growth for 2026, which may impact the stock in the near term.
Despite these short-term concerns, TD Cowen remains optimistic about Charles River Labs’ ongoing strategic review, which it believes could generate significant value for shareholders.
The firm specifically noted that Charles River Labs could potentially sell its manufacturing segment at approximately 15 times EBITDA, based on comparable valuations in the tools sector.
Such a transaction could generate approximately $2.8 billion in proceeds after taxes and debt reduction, which would be sufficient to repurchase about 33% of the company’s outstanding shares, according to TD Cowen’s analysis.
In other recent news, Charles River Laboratories reported its second-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $3.12, compared to the forecasted $2.50. The company also reported revenue of $1.03 billion, slightly exceeding the predicted $984.86 million. These results highlight a 24.8% earnings surprise, which is significant for investors monitoring the company’s financial performance. Additionally, Charles River Laboratories received an upgrade from William Blair, moving its stock rating from Market Perform to Outperform. William Blair anticipates a more favorable environment for pharmaceutical outsourcing, particularly in the contract research organization space. Jefferies also upgraded Charles River Laboratories, raising its rating from Hold to Buy and increasing the price target to $195.00 from $142.00. This upgrade was influenced by improved Discovery and Safety Assessment bookings across the sector, despite a sequential decrease in the company’s second-quarter bookings. These developments reflect a positive outlook from analysts on the company’s future performance.
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