Morgan Stanley Upgrades Charles River Laboratories to Buy
Morgan Stanley has raised its rating on Charles River Laboratories to Buy with a $220 target, a 21.17% upside from the current price.
Key Points
- Morgan Stanley upgraded Charles River Labs to a Buy with a $220 price target on June 17, 2026.
- Morgan Stanley's $220 price target implies 21.17% upside from Charles River Laboratories International, Inc.'s ($CRL) current $181.56 share price.
- Charles River Labs trades at $184.79 with a market cap of $8.9 billion and a forward P/E of 15.01.
- Other analysts like CLSA and Barclays also maintain Buy ratings, with targets around $220.
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Morgan Stanley has upgraded its rating on Charles River Laboratories International, Inc. (NYSE: CRL) to a Buy, setting a price target of $220. Analyst Ricky Goldwasser made the announcement on June 17, 2026, as the stock traded at $184.79.
What Changed in Morgan Stanley's Charles River Laboratories Position
Morgan Stanley's decision to raise its rating on Charles River Laboratories reflects a positive outlook on the company's future performance. The new price target of $220 suggests confidence in the stock's growth potential.
Other Institutional Activity in Charles River Laboratories
Several other institutional investors have also made notable moves with Charles River Labs. BlackRock, Inc. added 104,746 shares, bringing its total to 3,859,100 shares valued at approximately $665.7 million. FMR LLC significantly boosted its position by 1,722,334 shares, now holding 3,456,244 shares worth about $596.2 million. Vanguard Capital Management LLC acquired 3,202,204 shares, while Invesco Ltd. reduced its holdings by 298,898 shares to 2,397,252 shares, valued at $413.5 million.
Charles River Laboratories International, Inc. Stock Down 37.7%
Shares of NYSE:CRL are trading near $184.79. The company has a market cap of $8.9 billion and a forward P/E ratio of 15.01. With a beta of 1.449, the stock's 52-week range is between $143.06 and $228.88. The 50-day moving average is $174.10, and the 200-day moving average is $177.80.
$CRL price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Charles River Laboratories reported revenue of $4.03 billion with a slight growth rate of 1.2%. However, the company has a net margin of -4.6% and a return on equity of -5.9%. The next earnings report is expected on August 5, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
2 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 5.0%. Revenue beat estimates by 0.9%.
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Profit surprise
EBITDA missed by 6 percent. Operating income missed by 22 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 upgrade, 2 target raises.
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Earnings quality
Gross margin down 4.2 points. Operating margin up 4.5 points. Positive free cash flow.
Earnings Call Summary
Charles River delivered first quarter earnings of $2.06 per share, beating expectations of $1.96, with revenue of about $996 million slightly above consensus. The company faced planned headwinds from animal supply costs and timing issues, but management expressed confidence that these would ease in coming quarters. New CEO Birgit Girshick outlined a strategy called Pathway to Purpose focused on modernizing operations, improving client relationships and driving cost savings of over $100 million this year.
Guidance Charles River reaffirmed full year earnings growth guidance of 5 to 10 percent, expecting around $10.80 to $11.30 in earnings per share. They project significant operating margin expansion of 120 to 150 basis points in 2026, driven mainly by cost savings and completed acquisitions.
Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.
Insider Buying and Selling at Charles River Laboratories International, Inc.
Recent insider transactions include Shannon Parisotto, Chief Executive Vice President of Discovery & Safety Assessment, selling 1,529 shares on June 5, 2026. James Foster also sold 183,361 shares on the same day. Conversely, both Parisotto and CEO Birgit Girshick purchased 1,529 and 3,386 shares, respectively, on June 5, 2026.
Analysts Set New Price Targets
On June 17, 2026, Morgan Stanley upgraded Charles River Laboratories to a Buy with a $220 price target. CLSA also upgraded the stock to Buy with a $219 target on May 29, 2026. Barclays maintained its Buy rating with a $220 target on May 8, 2026. The consensus recommendation is a Buy, with an average target price of $212.27 from 15 analysts.
About Charles River Laboratories
Charles River Laboratories International, Inc., based in Wilmington, Massachusetts, is a leading provider of drug discovery and safety testing services. The company operates globally, offering research models and services, discovery and safety assessment, and manufacturing solutions. CEO Birgit Girshick leads the company, which employs around 18,300 people.
Bottom Line
Morgan Stanley's upgrade to a Buy rating with a $220 target highlights growing confidence in Charles River Laboratories. Investors closely monitor such analyst moves for insight into potential stock performance. Remember, 13F filings and analyst ratings are backward-looking and may not reflect current market conditions.
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