JPMorgan Upgrades Charles River Labs (CRL) to Overweight

JPMorgan analyst Casey Woodring upgraded Charles River Labs (NYSE: CRL) from Neutral to Overweight with a price target of $310.00 (from $180.00).

The analyst comments: “CRL delivered strong 2Q results while raising 2026 guidance on the back of a 1.19 DSA B2B, which came in above the heightened buy-side bar, based on our conversations, post-clinical CRO prints that was closer to ~1.10 (recall, heading into earnings we believed the buy side was initially at ~1.05). B2B came in above 1.0 for the third quarter in a row and was the highest its been in about four years driven by sequential bookings growth of +13% q/q. Management characterized demand as broad based between biotech and large pharma and highlighted that proposal volume was up +10% y/y in our follow-up (vs. +9% in 1Q), while also indicating that its capture rate has also increased. Looking ahead, CRL raised DSA growth expectations for the year while pointing to DSA growth of +LSD in 2H while reiterating expectations for total company adj. OPM expansion of >+500bps in 2H underpinned by the recent divestitures and acquisition of K.F. Stepping back, following the strong bookings/proposals in 2Q, it is clear that CRL is seeing sustainable momentum in DSA on the back of healthy biotech funding and large pharma activity levels, which lends itself to more visible top- and bottom-line growth moving forward. As such, we move to Overweight from Neutral while rolling forward our DCF to establish a Dec. ‘27 price target of $310 (vs. Dec. ‘26 price target of $180 prior).”

For an analyst ratings summary and ratings history on Charles River Labs click here. For more ratings news on Charles River Labs click here.

Shares of Charles River Labs closed at $260.72 yesterday.

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