Charles River could be hurt by NHP supply challenges in FY23, says BofA

BofA analyst Derik de Bruin maintains a Buy rating and $260 price target on shares of Charles River Laboratories, telling investors in a research note that the company’s 8-K and management comments highlight supply uncertainty for nonhuman primate animal models. Charles River does not see this issue hurting its FY22 outlook, but management noted that it’s still too early to comment on the nature of the potential headwind in FY23, the analyst says, adding that he thinks it is likely that the drug industry and regulators would opt to substitute other animal models rather than slow the development of new drugs.