Global Travels, AI Deep Dives & Brain Shuttles

Research evidence excerpt

Global Travels, AI Deep Dives & Brain Shuttles

IdeaMValuation Methodology and Risks

Charles River Laboratories International (CRL.N)

Our PT of $220 implies ~14x EV/'26 EBITDA and represents a 2x premium to our CRO peer

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

have a full year's benefit until 2027, and projected double digit EPS growth through 2028.

Risks to Upside

n Faster than anticipated biotech demand recovery

n Cost cutting initiatives materialize faster than expected

n Pricing pressures subside faster than anticipated, proving upside to margins

Risks to Downside

n Slowing in the biotech recovery, weighing on pre-clinical demand and CDMO/manuf.

n Seq. weakening of large pharma demand, causing uptick in cancellations and softening

B2B

n Pricing pressures worsen weighing on margins

Iqvia Holdings Inc (IQV.N)

Our primary valuation methodology for IQV is an EV/EBITDA multiples-based approach and

our PT is based on a ~12x EV/EBITDA target multiple on our Base Case 2026 EBITDA, approxi-

mately in line with CRO peers.

n Tech & RWE offerings translate into accelerated rev. growth & margin expansion

n Potential upside from share gains in the R&DS segment

n Peer consolidation leads to industry disruptions & share gain for IQV

n AI disrupts traditional CRO business models

n Muted pharma activity/slowing of biotech recovery weighs on demand

n R&DS margin headwinds due to pricing pressure pass-throughs, & FSP mix shift

Resmed Inc (RMD.N)

Discounted cash flow valuation, applying probability-weightings of 60% to our base case, 5%

to our bull case and 35% to our bear-case scenarios. Our base case captures FY26 financial

guidance and an estimate for Philips' re-entry into the US. We see greater probabilities