UPDATE: ISI Group Initiates Charles River Labs With Underweight, $34 PT Demand, Preclinical Headwinds

ISI Group initiated its coverage on Charles River Labs CRL with an Underweight rating and a price target of $34 per share. ISI Group noted, "We are initiating coverage on shares of Charles River Laboratories with an Underweight rating and a price target of $34.00, which on a forward basis equates to ~9x EV/EBITDA and ~12x operating EPS. Our thesis for CRL is based on RMS performance remaining mixed (as soft demand in small model production offsets ancillary services), continued challenges in Preclinical Services from massive global overcapacity, and the benefits from a multi-year restructuring effort." Charles River Labs closed at $32.69 on Monday.