Bet_Noire
Mizuho has initiated coverage of Charles River Laboratories (NYSE:CRL) with a neutral rating, citing near-term challenges for its drug discovery services due to softer funding.
“While we are positive in the long-term growth outlook for the company and industry, we believe near-term visibility is limited due to the macroeconomic and funding environment coupled with the potential for increased competitive pricing pressure,” Mizuho said in its note.
The investment bank added that while softer near-term demand was impacting growth rates, it expects the company to “emerge from this cycle in a stronger competitive position.”
Mizuho added that the company still enjoys a solid reputation with its customers for its expertise, quality, global footprint, and regulatory experience.
The investment bank set a price target of $235 for the stock.