Charles River Laboratories International upgraded to Outperform from MarketPerform by William Blair.

Charles River Laboratories International upgraded to Outperform from MarketPerform by William Blair.

Charles River Laboratories International (NYSE:CRL) saw its stock price rise by 2.6% in the afternoon session on September 12, 2025, following an upgrade from William Blair. The investment bank upgraded the company from MarketPerform to Outperform and raised its price target to $195 from $155. This positive momentum continued from earlier in the day when shares gained 1.9% after Barclays upgraded the company to Overweight from Equal Weight Charles River Laboratories (CRL) Stock Is Up, What You Need To Know^[1].

The positive outlook is attributed to signs that drug discovery cancellations have begun to normalize and that bookings have stabilized about a year ago. Additionally, checks suggest that budgets at large pharmaceutical and bigger biotech companies are holding up, which has led to heightened optimism among analysts regarding the company's prospects Charles River Laboratories (CRL) Stock Is Up, What You Need To Know^[1].

Following the initial pop, the shares cooled down to $179.33, up 2.3% from the previous close. This move indicates that while the market considers the news meaningful, it does not fundamentally change its perception of the business. The stock has been quite volatile, with 17 moves greater than 5% over the last year Charles River Laboratories (CRL) Stock Is Up, What You Need To Know^[1].

Charles River Laboratories is down 1.8% since the beginning of the year and is currently trading 18.7% below its 52-week high of $220.69 from November 2024. Investors who bought $1,000 worth of Charles River Laboratories' shares 5 years ago would now be looking at an investment worth $763.20 Charles River Laboratories (CRL) Stock Is Up, What You Need To Know^[1].

The recent upgrade by William Blair comes amidst a broader sector-wide rally in health care stocks, driven by a breakthrough drug pricing agreement between President Donald Trump and Pfizer Inc. (NYSE:PFE). This agreement ties U.S. drug prices to international benchmarks, leading to a significant rally in health care stocks Trump-Pfizer Deal Pushes Health Care Stocks To Best Rally In 5 Years^[2]. The Health Care Select Sector SPDR Fund (NYSE:XLV) soared over 5% across Tuesday and Wednesday, marking its best 2-day performance since November 2020 Trump-Pfizer Deal Pushes Health Care Stocks To Best Rally In 5 Years^[2].

The Pfizer agreement, which includes most-favored-nation pricing, direct-to-patient discounts, and a $70 billion investment in domestic manufacturing, has been interpreted by investors as a sign that harsher pricing rules could be avoided. This has led to a surge in health care stocks, with Charles River Laboratories International being one of the beneficiaries Trump-Pfizer Deal Pushes Health Care Stocks To Best Rally In 5 Years^[2].

In conclusion, the upgrade by William Blair and the broader sector rally provide a positive outlook for Charles River Laboratories International. However, investors should remain cautious due to the stock's volatility and the potential for further price volatility in the health care sector.