Top 10 Stocks to Buy According to Ariel Investments

8. Charles River Laboratories International, Inc. (NYSE:CRL)

Number of Hedge Fund Holders: 43

Ariel Investments Equity Stake: $249.12 Million

Charles River Laboratories International, Inc. (NYSE:CRL) is one of the top stocks to buy according to Ariel Investments. On June 17, Morgan Stanley upgraded Charles River Laboratories International, Inc. (NYSE:CRL) to an Overweight from Equalweight and raised the price target to $220 from $185.

The research firm remains bullish on the company’s long-term prospects and growth metrics, driven by a strong uptick in biopharma funding that’s translating into proposals and bookings. Consequently, it expects the company to benefit given its leading preclinical capabilities. The investment bank also expects recent acquisitions and divestitures to offer upside risk to Street estimates and help shrug off historical volatility.

Morgan Stanley expects Charles River Laboratories International to experience a notable uptick in safety testing on the lowering of barriers for taking shots on goal. Consequently, it has moved its 2027 earnings per share estimates up low single digits.

Additionally, CLSA upgraded Charles River Laboratories International to Outperform from Hold, buoyed by a more favorable regulatory environment in China.

Charles River Laboratories International, Inc. (NYSE:CRL) is a contract research organization (CRO) that partners with pharmaceutical, biotechnology, and medical device companies to accelerate drug discovery, development, and manufacturing. They provide the critical research models and laboratory services needed to test new drugs and therapies before they reach human clinical trials.