- After a more than 10% decline in the previous session, Charles River Laboratories ( NYSE: CRL ) gained ~2% Thursday as Guggenheim upgraded the non-clinical contract research organization (CRO) despite its underwhelming outlook.
- Charles River ( CRL ) reported better-than-expected financials for Q4 2022 on Wednesday. Still, its 2023 guidance came below Street forecasts as the company faces supply chain headwinds related to non-human primates (NHPs).
- “Aside from the NHP issue (which we believe will be resolved at least to some degree over the next year), CRL is performing well operationally and continues to see a robust demand environment,” Guggenheim analyst Alexander Draper argued.
- Citing its P/E multiple in terms of 2024 EPS, the analyst notes that CRL represents a buying opportunity for “a high quality CRO with a solid long-term growth outlook.”
- Seeking Alpha contributor Daniel Jones thinks that Charles River ( CRL ) shares are neither cheap nor expensive, and the company is “a great business at a decent price.”
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Charles River gains as Guggenheim upgrades despite post-earnings selloff