Charles River Reports Solid Q1 Results; Maintaining FVE of $260 and Positive Outlook for 2022

Charles River reported solid first-quarter results in line with our expectations, and quarterly revenue reached $914 million, representing an increase of nearly 11% year over year. The company continues to benefit from strong booking activity and a robust backlog. We’ve updated our model with the latest results, and we maintain our $260 fair value estimate. Charles River is currently trading in 3-star territory about 7% below our fair value estimate. We maintain our narrow moat and stable trend ratings, which are based on the company’s robust competitive position and expansive offerings of preclinical services.