On Tuesday, BofA Securities maintained a Neutral rating on shares of Charles River Laboratories (NYSE:CRL) with a $210.00 price target. According to InvestingPro data, the stock is currently trading near its 52-week low of $176.48, with analyst targets ranging from $164 to $260.
BofA Securities analysts highlighted that before a presentation at an investor conference scheduled for the evening, Charles River Labs (NYSE:CRL) issued a preliminary forecast for the fiscal year 2025, indicating continued sales challenges.
The company expects organic sales to decline by 3% to 4%, mirroring the estimates for 2024. This outlook suggests a year-over-year reported revenue drop of 4.5%, equating to approximately $3.85 billion in sales, which falls short of the consensus estimates of $4.07 billion by 5.5%.
Despite these challenges, InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with strong profitability metrics including a 35.7% gross margin.
The adjusted earnings per share (EPS) are projected to be around $9.50, compared to the Street's expectation of approximately $10.20, marking a 7% shortfall. The analysts noted that the preliminary guidance for 2025 is disappointing and mentioned that the stock was trading lower in pre-market sessions as a result.
The BofA Securities team reiterated their Neutral stance on Charles River Labs stock, citing the rationale that despite favorable long-term fundamentals, near-term obstacles are likely to continue for some time. The recent update from the company was seen as supporting this thesis.
The company's update and the analysts' reiteration of their rating come ahead of the investor conference where Charles River Labs is set to present later on Tuesday. For deeper insights into CRL's valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro, where you'll find detailed research reports and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.