Bank of America Securities analyst Michael Ryskin has reiterated their neutral stance on CRL stock, giving a Hold rating yesterday.
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Michael Ryskin has given his Hold rating due to a combination of factors regarding Charles River Labs’ current financial and market situation. Despite reporting better-than-expected fourth-quarter results, the company’s outlook for FY25 indicates a potential decline in organic sales and adjusted earnings per share. This cautious forecast is primarily driven by muted demand from Biopharma customers and challenges in the Discovery & Safety Assessment (DSA) segment, where both lower volume and pricing are expected to impact performance.
Moreover, the company faces headwinds in its Manufacturing segment due to cancellations in its contract drug manufacturing operations and low demand from cell and gene therapy clients. While Charles River Labs has initiated restructuring initiatives to manage margin declines, the overall visibility remains limited, with management expecting stable but unimproved conditions in FY25. Consequently, these factors have led to a Hold rating, reflecting the uncertainty and balanced risk-reward profile at the current price level.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $175.00 price target.
CRL’s price has also changed moderately for the past six months – from $204.020 to $165.000, which is a -19.13% drop .