Tejas Savant, an analyst from Morgan Stanley, maintained the Hold rating on Charles River Labs (CRL – Research Report). The associated price target remains the same with $184.00.
Tejas Savant has given his Hold rating due to a combination of factors surrounding Charles River Labs. The recent announcement by the FDA to potentially phase out animal testing in favor of New Approach Methodologies (NAMs) poses a significant uncertainty for the company. Since a substantial portion of Charles River Labs’ revenue comes from research models and safety assessment studies involving animals, the shift towards non-animal testing methods could impact their financial performance.
Despite the potential risks, the exact timeline and extent of the impact remain unclear, as the FDA’s plans are still in the early stages and subject to stakeholder feedback. Additionally, while alternatives to animal testing are being explored, animal models are still considered the most reliable method for assessing drug safety. These uncertainties and the ongoing reliance on animal models contribute to the Hold rating, reflecting a cautious stance until more information becomes available.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $179.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CRL in relation to earlier this year.