Our $200 price target is based on a 50/50 split between an 10x EV/EBITDA multiple to our Q5-Q8 EBITDA estimate of $1,414mn and a 14.0x P/E to our Q5-Q8 EPS estimate of $11.18. We believe CRL deserves to trade above peers given the embedded conservatism within their 2H25 guide, particularly in DSA, and the added factors of an activist and strategic review should put a floor on the company’s multiple.

Downside risks include: 1) strong indication that DSA revenues and margins will decline again in FY26; 2) further deterioration in spend levels from both global biopharmas and biotechs; and 3) margin degradation.