KeyBanc Starts Charles River Labs (CRL) at Hold
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Price: $225.34 -1.67%
Rating Summary:
22 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 12
Rating Summary:
22 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 12
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KeyBanc initiated coverage on Charles River Labs (NYSE: CRL) with a Hold rating.
Analyst tDonald Hooker said, "Our investment thesis on Charles River reflects caution on the Company's legacy small research models (about a third of revenues). Volumes of research models declined in the mid-single digits in both 2012 and 2013, as a result of the downsizing of inhouse preclinical laboratory capacity by major biopharmaceutical firms. In our view, only a portion of this lost revenue finds its way back to Charles River over time via increased preclinical outsourcing. Also, since model sales carry high incremental margins, we think it will be very challenging for Charles River to grow earnings in a sustainable manner unless its core research models and services businesses can stabilize and grow."
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 $61.85 yesterday.
Analyst tDonald Hooker said, "Our investment thesis on Charles River reflects caution on the Company's legacy small research models (about a third of revenues). Volumes of research models declined in the mid-single digits in both 2012 and 2013, as a result of the downsizing of inhouse preclinical laboratory capacity by major biopharmaceutical firms. In our view, only a portion of this lost revenue finds its way back to Charles River over time via increased preclinical outsourcing. Also, since model sales carry high incremental margins, we think it will be very challenging for Charles River to grow earnings in a sustainable manner unless its core research models and services businesses can stabilize and grow."
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 $61.85 yesterday.
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