TD Cowen analyst Charles Rhyee has reiterated their bullish stance on CRL stock, giving a Buy rating on October 6.
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Charles Rhyee has given his Buy rating due to a combination of factors including the potential value generation from a strategic review of Charles River Labs’ operations. He suggests that selling the manufacturing segment, which has minimal synergies with the core business, could unlock significant value. By divesting this segment, Charles River Labs could potentially generate substantial post-tax proceeds, which could be used to repurchase a significant portion of outstanding shares or reinvest in core business areas.
Furthermore, Rhyee highlights that despite concerns about revenue growth in the latter half of 2025, the strategic review and potential divestiture could offset these worries. The manufacturing segment, while not a major focus for investors, has shown consistent organic growth and high operating margins, indicating its potential value. This strategic move, coupled with the company’s ability to maintain leverage, supports Rhyee’s positive outlook and Buy rating for Charles River Labs.
According to TipRanks, Rhyee is a 3-star analyst with an average return of 2.4% and a 48.81% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as CVS Health, Evolent Health, and Veeva Systems.