Charles River Earnings: Healthy Demand and Pricing Gains Drive Growth; Shares Undervalued

Charles River Laboratories reported solid first-quarter results highlighted by revenue of $1.03 billion, representing a 12% increase compared with the prior-year period. Charles River’s strong start to the year was due to healthy demand and pricing gains globally. Investors reacted positively to the results and sent the stock up 5%. We maintain our fair value estimate of $260 per share, and we view the stock as undervalued, currently trading in 4-star territory. We reaffirm our narrow moat and stable moat trend ratings, which are based on the company’s strong competitive advantages and expansive offerings of preclinical services.