Charles River Laboratories International's (CRL) is positioned as the "leading" contract research organization, or CRO, for the acceleration of preclinical research and development into 2027, RBC Capital Markets said in a Monday note.
RBC said improving macro conditions appear to be setting up an inflection in research and development spending, potentially starting in H2 and then accelerating through 2027. This expected increase in spending should benefit drive outsourcing to CROs and benefit Charles River Laboratories, the brokerage noted.
Charles River Laboratories could also see an opportunity in the ongoing evolution of new alternative methods or NAMs, depending on the company's adoption of NAMS, RBC said.
RBC initiated coverage on Charles River Laboratories International with an outperform rating and $215 price target.
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