Charles River Laboratories' (CRL) Discovery and Safety Assessment segment faces the largest margin upside, as pricing has not been meaningfully factored in, RBC Capital Markets analysts said in a Friday note.
Analysts said the company's long-range plan beat consensus expectations but was in line with RBC estimates.
The company believes integrating in vitro, in silico, and in vivo evidence to generate more robust decision-making is the future of new approach methodologies, according to RBC.
Analysts said that the company's $300 million Create the Future program is a credible margin bridge, while manufacturing expansion expands its reach across the clinical development life cycle.
RBC retained an outperform rating on the stock and increased its price target to $322 from $282.
Price: 291.92, Change: -2.52, Percent Change: -0.86
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