Jefferies Has Hold On Charles River Laboratories

Jefferies & Co. is out with a research report on Charles River Laboratories (NYSE: CRL) and it has a Hold rating and a $33 price target on shares.

In a note to clients, Jefferies & Co. writes, "On Tuesday evening, Charles River issued a release announcing a "new business alignment" and management assignments. The organizational changes to the business units have come in several phases over the last 2+ years. We view the assignment of new leadership responsibilities as the news here."

Jefferies goes on to say, "Advantages...The growing interest in late-discovery outsourcing (in vivo efficacy work in disease models, for example) has created a business opportunity that is optimized by combining animal model science with study conduct operational skills. Historically, those capabilities reside separately in RMS and PCS. This will bring them together. Dr. Gillett's focus on science and the reference to M&A relates directly to CEO Foster's recent expressions of interest in technology/IP acquisitions (specialty models, therapeutic skills in late-discovery)."

Shares of CRL closed at $32.98 yesterday.