Charles Rhyee, an analyst from TD Cowen, maintained the Buy rating on Charles River Labs. The associated price target remains the same with $179.00. Charles Rhyee has given his Buy rating due to a combination of factors that suggest potential stability and value creation for Charles River Labs. Despite recent pressures from elevated cancellations in the DSA segment and management’s guidance for a similar B2B ratio in the second half of the year, Rhyee views the stabilization of demand as a positive sign. This stability in demand, particularly in the large pharma and biotech sectors, indicates confidence in maintaining current levels, which supports a favorable outlook. Moreover, Rhyee highlights the opportunity for significant value creation through the potential sale of the manufacturing segment. Although updates on this strategic review are not expected until the second half of 2025, the prospect of such a sale adds to the long-term attractiveness of the stock. Additionally, while current B2B ratios pose challenges for core revenue growth in 2026, the shorter booking cycles of preclinical CRO studies leave room for potential revenue growth if demand accelerates in the future. In another report released on August 7, Deutsche Bank also maintained a Buy rating on the stock with a $185.00 price target.

Charles River Labs: Stability and Long-term Value Creation Potential Amidst Short-term Challenges

Charles River Labs received a Buy rating from TD Cowen and Deutsche Bank despite short-term challenges in the DSA segment and projected B2B revenue ratios. Analyst Charles Rhyee highlights stabilization in demand from large pharma and biotech sectors as a positive sign, supporting a favorable long-term outlook. The potential sale of the manufacturing segment is seen as a key driver of value creation, with updates expected in the second half of 2025. While current B2B ratios may hinder core revenue growth in 2026, shorter booking cycles in preclinical CRO studies offer room for future revenue growth if demand accelerates. Deutsche Bank also maintains a Buy rating with a $185.00 price target.