Reassessing our CRO Outlook: Upgrading CRL to Overweight and Downgrading IQV to Equal-weight

Research evidence excerpt

Reassessing our CRO Outlook: Upgrading CRL to Overweight and Downgrading IQV to Equal-weight

Idea

June 17, 2026 10:25 AM GMT

Morgan Stanley & Co. LLCMLife Science Tools & Diagnostics | North America Kallum L Titchmarsh

Equity Analyst

Reassessing our CRO Outlook: Kallum.Titchmarsh@morganstanley.comJason Lai +1 212 761-2351

Research Associate

Jason.Lai@morganstanley.com +1 212 761-4848

Upgrading CRL to Overweight Jakob Dodd

Jakob.Dodd@morganstanley.com +1 212 761-0797

and Downgrading IQV to Equal-

Life Science Tools & Diagnostics

North America

Industry View In-Lineweight

What’s Changed

We upgrade CRL to OW and downgrade IQV to EW. While both Charles River Laboratories

International (CRL.N) From To

valuations are discounted + demand trends are robust, we see Rating Equal-weight Overweight

more upside risk to CRL's numbers + think AI could remain more Price Target $185.00 $220.00

of a relative overhang on the clinical CRO business model. Iqvia Holdings Inc (IQV.N) From To

Rating Overweight Equal-weight

Flipping the script: We upgrade CRL to Overweight and downgrade IQV to Equal- Price Target $225.00 $200.00

weight following a volatile period for both stocks.

CRL - Moving to Overweight w/ $220 PT: With a strong uptick in biopharma

funding beginning to transition into RFPs and bookings, we think CRL is well

positioned to benefit given its leading preclinical capabilities. We also believe recent

acquisitions and divestitures offer clear upside risk to Street numbers from

2027onward and help to reduce areas of historical volatility through the P&L (e.g.

building out a more reliable NHP or non-human primates supply network). While

small, additional upside could present itself from WuXi's recent inclusion on the U.S.

DoD's 1260H list as well as Inotiv's Chapter 11 filing.