Cambodian NHP suspension neutral to positive for Inotiv, says Lake Street

Lake Street notes that the Convention of International Trade in Endangered Species recently issued a statement recommending all parties suspend trade in Cambodia and that the meeting to vote on the recommendations will take place February 3-8. If the recommendation to suspend trade of non-human primates with Cambodia is confirmed, this could result in some global NHP supply shortage, but for Inotiv (NOTV) the firm thinks this will likely result in minimal impact in FY25. The firm thinks it is best to view this as a net neutral, but adds that “if anything, we think this is most likely a net positive given the stability of the contracted business with some upside potential from the spot market business.” The firm, which recommends to buy the weakness in Inotiv shares, reiterates a Buy rating and $6 price target on the stock.