Charles River initiated with a Sell at Redburn Atlantic

Redburn Atlantic analyst Jamie Clark initiated coverage of Charles River Laboratories with a Sell rating and $151 price target Detailed analysis of expected biopharma R&D spend suggests growth rates normalizing post-pandemic, and a shift in outsourcing practices from full-service outsourcing, or FSO, to functional service provider, or FSP, may result in Contract Research Organizations, or CROs, seeing lower revenue/contracts than historically, says the analyst. Charles River focuses on pre-clinical development and is seeing a relative impact as biopharma companies prioritize clinical research, the analyst tells investors.