Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Charles- CharlesRiver LaboratoriesRiverInternationalLaboratories(CRL.N) International

(CRL.N)Best-in-Class Preclin CRO: Bullish on Demand Environment, Portfolio Refinement

PRICE TARGET $220.00 OVERWEIGHT THESIS

Our PT of $220 implies ~14x EV/'26 EBITDA and represents a 2x premium to our CRO peer ▪As a best-in-class preclinical research CRO

group, which we believe to be justified by recent acquisitions and divestitures which won't with contract manufacturing capabilities, we

have a full year's benefit until 2027, and projected double digit EPS growth through 2028. expect continued share gains over the long

term given increasing outsourcing $216.82

penetration, geopolitical shifts, and its

Consensus Price Target Distribution $143.12 $265.00 industry-leading scale and scope

MS PT

in the biopharma fundingSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪Momentum

environment has picked up since 2H25,

boosting the likelihood of a near term

turnaround in DSA

RISK REWARD CHART ▪We see recent acquisitions and

divestitures to CRL's portfolio providing the

company with a sharper strategic focus into

USD

$260.00$260.00(+40.54%)$260.00(+40.54%)(+40.54%) its core businesses including regulated

safety assessment, core research models,

240 and biologics/microbial testing, while exiting

$220.00$220.00(+18.92%)$220.00(+18.92%)(+18.92%) businesses that are less synergistic with the

broader portfolio

$185.00$185.00$185.00

Consensus Rating Distribution

120 $140.00$140.00(-24.32%)$140.00(-24.32%)(-24.32%) 68% Overweight

32% Equal-weight

0% Underweight

MS Rating

Source: Refinitiv, Morgan Stanley Research

JUN '25 DEC '25 JUN '26 JUN '27

Risk Reward ThemesKey: Historical Stock Performance Current Stock Price Price Target