Opinions Stockchase Insights
Charles River Labs IntlCRLBUYApr 12, 2024
Stockchase InsightsUnknown
$241.34
Stock price when the opinion was issued
$181.34
As of Jun 05, 2026. Market Open.
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HOLD
Lost some gleam. Related to healthcare sector as a whole. Still confident in it. This is why you have a portfolio -- when some stocks fall, you have others to do the heavy lifting.
Gordon ReidOwned
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PAST TOP PICK
(A Top Pick May 30/19, Up 44%) A contract research organization who partners with major pharma companies for drug testing and clinical testing. This is the second company in this space that has done well for them. He would stick with it.
Gordon ReidOwned
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TOP PICK
They are a contractor to pharma labs. A lot of large pharma companies outsource to them. They have predictable margins. They are growing organically and through acquisition. (Analysts’ price target is $148.13)
Gordon ReidOwned
0
TOP PICK
Does safety testing, the efficacy, phase 1 through 3 trials for particular drugs for pharmaceutical companies. High growth, growing earnings last year at 17%.
Gordon ReidOwned
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CRL provides drug discovery and safety testing services and is now trading at 22.6 times' Forward P/E (historical averages range from 19x to 33x). In the last five years, revenue growth was quite healthy, averaging around 12% on average, largely driven through acquisitions. The balance sheet is slightly leveraged, with net debt of $2.8B and net debt/EBITDA of around 2.7x. The company has been growing and repurchasing shares over the last few years. It is a solid company in our view, but as might be expected the valuation is a little expensive given the high quality of the business (not excessive though at 22X earnings). Based on consensus estimates, sales are expected to grow by 2% this year and then normalize to around 7% over the next few years. Overall, an interesting name with strong growth and healthy cash generation. We would be comfortable owning it.
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