CRL Ranks 499th in Trading Volume as Jefferies Upgrades to Buy and Analysts Highlight Resilient Earnings and Strategic Catalysts

Charles River Laboratories (CRL) closed 2025/09/09 down 2.85% with $0.21 billion in trading volume, ranking 499th in market activity. The stock faces renewed analyst scrutiny following a strategic upgrade from Jefferies, which raised its rating to Buy from Hold and increased the price target to $195 from $142. This follows a 22% year-over-year increase in Discovery and Safety Assessment (DSA) bookings during Q1 2025 and 8% growth in Q2, despite sequential declines in Q2 bookings aligning with historical patterns.

Recent financial performance underscores CRL’s resilience. The company reported Q2 2025 earnings of $3.12 per share, surpassing estimates by 24.8%, with revenue reaching $1.03 billion against forecasts of $984.86 million. However, post-earnings trading saw mixed investor reactions, with pre-market declines suggesting broader market influences. Analysts highlighted CRL’s 5.07% net margin outperforming industry benchmarks and its 13.5x 2026 forward P/E ratio as undemanding valuations amid ongoing strategic reviews.

Strategic catalysts include potential divestiture of the Manufacturing Solutions segment and activist investor engagement. Six analysts have raised price targets since July 2025, with the average target now at $181.67—a 15.71% increase from prior estimates. Key upgrades include Citigroup’s $200 target and Barclays’ $165 level, reflecting confidence in CRL’s preclinical innovation capabilities in oncology and gene therapy. Analysts broadly view second-half 2025 guidance as conservative, with DSA revenue potential exceeding consensus expectations by 5%.

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