Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Charles River Laboratories (NYSE:CRL) received an upgrade from Jefferies on Tuesday, with its rating raised from Hold to Buy and its price target increased to $195.00 from $142.00. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong marks in profitability metrics despite recent challenges.
The research firm cited improved Discovery and Safety Assessment (DSA) bookings across the sector during the first half of 2025, with weighted average bookings up 22% year-over-year in Q1 and 8% in Q2. Although CRL’s second-quarter bookings decreased sequentially, Jefferies noted this aligned with historical patterns. The company’s revenue reached $4.03 billion in the last twelve months, and InvestingPro analysts expect net income growth this year despite current market challenges.
Jefferies now models second-half DSA revenue 5% higher than consensus and guidance, driving consolidated earnings per share approximately 2% above street expectations for fiscal year 2025. The firm believes CRL’s current second-half guidance appears conservative based on typical DSA revenue seasonality. This aligns with broader analyst sentiment, as revealed in InvestingPro’s comprehensive analysis, which shows analyst targets ranging from $142 to $211 per share.
The upgrade also highlighted potential value creation opportunities through a possible sale of all or part of CRL’s Manufacturing Solutions segment. With activist investor involvement and an ongoing strategic review, Jefferies considers value extraction likely and downside limited.
Jefferies added that Charles River Labs’ valuation "isn’t demanding" at approximately 13.5 times 2026 price-to-earnings ratio, and while the strategic review isn’t new information, "the outcome is closer" and the firm is "more comfortable that numbers are stable."
In other recent news, Charles River Laboratories reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $3.12, significantly beating the forecasted $2.50, which represents a 24.8% surprise. Revenue also exceeded predictions, reaching $1.03 billion compared to the anticipated $984.86 million. These results highlight strong financial performance for the quarter. Despite the positive earnings report, the stock experienced a pre-market decline, reflecting mixed investor sentiment. Analysts had anticipated different market responses, but broader market conditions may have influenced the outcome. Charles River Laboratories’ recent earnings report is a key development for investors to consider.
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