The U.S. Food and Drug Administration's recent decision to scale back animal testing mandates for developing monoclonal antibodies and other drugs is expected to have a negative impact on Charles River Laboratories (CRL, Financial), according to JPMorgan. The change is described as a surprising move by the agency, which could prompt clients to reconsider their preclinical research processes.
Although Charles River has been actively investing in alternative testing methods, JPMorgan expresses uncertainty about the company's ability to retain its leadership in a preclinical market that may increasingly minimize animal use. The firm suggests that the announcement casts a shadow over Charles River's stock performance, leading to the maintenance of a Neutral rating on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Charles River Laboratories International Inc (CRL, Financial) is $173.33 with a high estimate of $215.00 and a low estimate of $130.00. The average target implies an upside of 73.42% from the current price of $99.95. More detailed estimate data can be found on the Charles River Laboratories International Inc (CRL) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Charles River Laboratories International Inc's (CRL, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Charles River Laboratories International Inc (CRL, Financial) in one year is $204.97, suggesting a upside of 105.07% from the current price of $99.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Charles River Laboratories International Inc (CRL) Summary page.
