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TD upgrades Charles River to Buy on potential for value creation

TD Cowen upgraded Charles River (CRL) to Buy from Hold with a price target of $179, up from $105. The firm believes the company’s likely divestitures could lead to value creation. While the weak macro environment likely persists, Charles River’s potential to unlock value “more than offsets concerns,” the analyst tells investors in a research note. TD believes activist participation will likely lead to strategic review that could end with a sale of the company’s manufacturing business, which the firm says it not integral to the core units.

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