KeyBanc Starts Charles River Labs (CRL) at Hold
Tweet
Share
E-mailGet Alerts CRL Hot Sheet
Price: $225.36 -1.66%
Rating Summary:
22 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 9 | New: 12
Rating Summary:
22 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 9 | New: 12
Join SI Premium – FREE
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Freedom Broker Upgrades Morgan Stanley (MS) to Buy
- Northland Starts Nephros (NEPH) at Market Perform
- Green Plains Renewable Energy (GPRE) PT Raised to $20 at UBS Ahead of Q2 Results
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, New CoverageRelated Entities
KeyBanc, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
