Charles River downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Charles River to Neutral from Overweight with a price target of $205, down from $270. The company reported a Q2 beat but took down guidance substantially due to an unexpectedly weaker demand environment in Discovery and Safety Assessment, the analyst tells investors in a research note. The firm says that while buy-side expectations assumed a guide cut on a slower pace of recovery in biotech within DSA, the magnitude of the cut was unexpected as was the demand deterioration flagged by management in large pharma. With a “newly heightened sense of uncertainty” on where 2025 numbers will land, JPMorgan now sees Charles River’s risk/reward as fairly balanced.