Charles River Laboratories International Inc. shares hit a 52-week high of $294.68 on Thursday, extending gains after the contract research firm reported second-quarter earnings that exceeded expectations.
The stock, which last traded at $294.93, is up about 90% over the past 12 months and has gained roughly 72% in the last six months. The company posted adjusted earnings per share of $3.02, surpassing the $2.74 forecast, while revenue reached $1 billion compared with an expected $976.13 million.
Despite these gains, Charles River reported a loss of $4.88 per share over the trailing 12 months. Analysts project a return to profitability in 2026, with forecasted earnings of $11.54 per share.
The company’s book-to-bill ratio for its drug safety assessment business stood at 1.19x for the quarter, marking the third consecutive quarter above 1.0x. This metric reflects sustained preclinical demand, with proposal activity up nearly 10% year-over-year.
Analysts have responded with bullish revisions. JPMorgan upgraded the stock to Overweight from Neutral and raised its price target to $310 from $180. TD Cowen and Evercore ISI also lifted their targets to $300, citing strong demand and the company’s first quarter of organic revenue growth since the third quarter of 2023.
The shares’ advance follows a broader rally in healthcare and biotech stocks amid increased drug development activity.
