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Valued at a market cap of $10.57 billion, Charles River Laboratories International, Inc. (CRL) provides drug discovery, non-clinical development, and safety testing services. The Wilmington, Massachusetts-based company is known for its specialized expertise in drug discovery and development and its comprehensive portfolio of laboratory services.
Shares of this healthcare company have significantly underperformed the broader market over the past 52 weeks. CRL has gained 1.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27%. In 2024, shares of CRL are down 13.2%, compared to SPX’s 18.1% gains on a YTD basis.
Zooming in further, CRL has also lagged behind the Invesco S&P 500 Equal Weight Health Care ETF’s (RSPH) 10.3% gains over the past 52 weeks and a 7% return on a YTD basis.
CRL’s shares fell 12.6% following its Q2 earnings release on Aug. 7. The company reported earnings of $94.10 million, or $2.80 per share, surpassing Wall Street expectations of $2.39. Also, the company's revenue of $1.03 billion matched the street forecast. CRL expects full-year earnings between $9.90 and $10.20 per share.
For the current fiscal year, ending in December, analysts expect CRL’s EPS to decline 6.2% year over year to $10.01. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings and 11 “Holds.”
This configuration is less bullish than three months ago, with nine analysts suggesting a “Strong Buy.”
On Aug. 8, Evercore ISI analyst Elizabeth Anderson CFA maintained a “Buy” rating on Charles River Labs, with a price target of $225, which indicates a 9.6% upside from the current levels.
The mean price target of $218.98 represents a premium of 6.7% to CRL’s current levels. The Street-high price target of $250 implies a potential upside of 21.8% from the current price.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
