Charles River Laboratories InteNYSE: CRL
Health Care · Life Sciences Tools & Services
$185.23
+1.58%
Vol: 473K
Research Digest
Friday, June 19, 2026
Morgan Stanley upgrades Charles River Laboratories to Overweight, raises target to $220; company joins Lilly TuneLab AI drug discovery platform.
Morgan Stanley upgraded Charles River Laboratories to Overweight from Equal Weight on June 17, 2026, raising the price target to $220 from $185, citing anticipated benefits from increased biopharma funding. On June 18, 2026, Charles River announced a collaboration with Lilly TuneLab, Eli Lilly's collaborative AI/ML drug discovery platform, enabling Charles River to access AI/ML models trained on decades of Lilly proprietary research data to accelerate nonclinical testing and biotech innovation. The stock closed at $188.06 on June 11 and has gained approximately 24.7% over one month and 25.8% over the past 52 weeks, a notable recovery driven by biopharma sector tailwinds. Earlier concerns about AI disruption to CRL's traditional CRO business model appear to be giving way to a narrative of AI-enabled partnership. The dual catalyst of a major analyst upgrade and a high-profile AI collaboration could sustain near-term momentum.
Previous Market Intelligence
13 daysJun 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 20Charles River completed divestiture of CDMO and Cell Solutions businesses to GI Partners while signing Medipost cell therapy partnership and naming Birgit Girshick CEO.Mixed▶
Charles River reported Q1 2026 revenue of $995.8M (+1.2% reported, -1.5% organic) with non-GAAP EPS of $2.06 (-12% YoY) and operating margin down 280bps to 16.3% due to NHP study costs and stock comp. The company completed the divestiture of CDMO and Cell Solutions businesses to GI Partners on May 6, 2026, and expects to complete sale of certain European Discovery Services sites this month. James C. Foster retired May 5, with Birgit Girshick (former EVP/COO) appointed CEO. On May 13, Charles River and Medipost signed a non-exclusive MoU to advance GMP testing solutions and cell therapy commercialization across APAC and North America. Charles River also announced expansion of its AI-enabled digital pathology platform.
May 19Charles River reported Q1 2026 revenue of $995.8M (+1.2% reported, -1.5% organic) and reaffirmed 2026 EPS guidance of $10.80-$11.30 on May 7, 2026.Mixed▶
Charles River reported Q1 2026 revenue of $995.8M, up 1.2% reported but down 1.5% organically, with non-GAAP EPS of $2.06, down 12% YoY due to higher non-human primate study costs and timing. Management reaffirmed 2026 guidance for organic revenue decline of 0.5%-1.5% and non-GAAP EPS of $10.80-$11.30, projecting Q2 EPS to rise at least 30% sequentially with most operating margin improvement expected in the second half. The company completed the CDMO and Cell Solutions divestiture to GI Partners on May 6 and expects to close the European Discovery Services sale in May. On May 13, Charles River signed a non-exclusive MoU with Medipost for GMP testing solutions, and the company also announced an AI-enabled digital pathology workflow. Morgan Stanley rated Hold on May 12, while a Buy with $235 PT was reiterated on May 10; directors purchased $510K in shares on May 8.
May 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 15Charles River beat Q1 with $995.8M revenue and named new CEO Birgit Girshick; Evercore raised PT to $220Positive▶
Charles River Laboratories reported Q1 2026 revenue of $995.8M (up 1.2% YoY, beating estimates) and adjusted EPS of $2.06. James C. Foster retired as CEO effective May 5 at the 2026 Annual Meeting, with EVP/COO Birgit Girshick taking over. The company completed the divestiture of CDMO and Cell Solutions businesses on May 6 and announced a partnership with MEDIPOST for cell therapy testing. Management slightly raised full-year adjusted EPS guidance to $11.05 midpoint while reaffirming organic revenue guidance of -0.5% to -1.5%. Evercore ISI raised PT to $220 from $200 on May 8; Morgan Stanley initiated Hold on May 12.
May 14Charles River CEO Foster retires May 5; Girshick takes helm as Q1 tops estimates, divestitures advance and directors buy $510K of sharesMixed▶
Charles River Laboratories announced CEO transition effective May 5, 2026: founder/CEO James C. Foster retired and EVP/COO Birgit Girshick was appointed CEO. The company reported Q1 2026 revenue of $996M (up 1.2% reported, down 1.5% organic) and non-GAAP EPS of $2.06 (down 12% YoY), beating expectations. Non-GAAP operating margin of 16.3% was down 280bps. CRL reaffirmed FY26 organic revenue guidance of -0.5% to -1.5% decline and non-GAAP EPS of $10.80-$11.30 (5-10% growth). The company completed the divestiture of CDMO and Cell Solutions on May 6 and expects to close the sale of European Discovery Services in May. Management introduced a new strategic framework, "Pathway to Purpose," and announced an AI-powered end-to-end digital pathology workflow on May 11. Two directors bought ~$510K of shares on May 8. Annual meeting May 5 approved 2026 incentive plan and re-elected 12 directors. Risk: continued biotech funding softness pressuring DSA demand.
May 13Charles River completed its CDMO and Cell Solutions divestiture to GI Partners on May 6 and named Birgit Girshick CEO effective May 5 as founder James Foster retired; Q1 EPS of $2.06 beat estimates.Mixed▶
Charles River announced major leadership and portfolio changes: James C. Foster retired as CEO effective May 5, and EVP/COO Birgit Girshick succeeded him. On May 6, the company completed the divestiture of its CDMO and Cell Solutions businesses to GI Partners. Q1 2026 revenue of $995.8M beat expectations with adjusted EPS of $2.06, though non-GAAP operating margin fell 280bps year-over-year to 16.3% on stock comp, higher non-human primate study costs, and timing-related NHP revenue. The company reaffirmed 2026 guidance for organic revenue decline of 0.5%-1.5% and non-GAAP EPS of $10.80-$11.30. Two directors bought a combined ~$510K in shares on May 8. Additional European Discovery Services divestitures are expected to complete in May. Risks include continued NHP volatility and organic revenue decline.
May 12Charles River appointed Birgit Girshick as CEO effective May 5 as James Foster retired, and closed the CDMO/Cell Solutions divestiture to GI Partners on May 6.Mixed▶
Charles River executed its CEO transition on May 5, 2026, with EVP/COO Birgit Girshick succeeding founder James C. Foster effective at the close of the annual meeting. On May 6 the company completed the divestiture of its CDMO and Cell Solutions businesses to GI Partners and expects to close the sale of certain European Discovery Services sites in May. Q1 revenue of $996M (+1.2% reported, -1.5% organic) and EPS of $2.06 beat the $1.96 consensus; FY26 guidance for organic revenue of -1.5% to -0.5% and non-GAAP EPS of $10.80-$11.30 was reaffirmed. On May 11 the company launched an AI-enabled end-to-end digital pathology workflow. Bear case: non-GAAP operating margin fell 280bp YoY to 16.3% on NHP cost headwinds and stock comp, and EPS still declined 12% YoY despite the beat.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| CRLCHARLES | $185.23 | +1.58% | +14.2% | 18.7x | 1.40 | $11.1B |
| TMOTHERMO | $466.53 | +1.05% | +6.3% | 19.2x | 0.87 | $194.5B |
| DHRDANAHER | $177.74 | -0.01% | +4.8% | 21.5x | 0.82 | $140.1B |
| WATWATERS | $356.50 | -0.14% | +2.7% | 23.0x | 1.20 | $37.2B |
| AAGILENT | $127.36 | +2.44% | -0.7% | 19.8x | 1.25 | $36.9B |
| IQVIQVIA | $168.20 | -1.45% | +11.5% | 14.6x | 1.20 | $34.6B |
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