Charles River Laboratories downgraded to Sell after 57% rally, citing limited growth and AI risks.

Charles River Laboratories' shares have surged 57% over the past year but were downgraded to 'Sell' due to concerns over fundamentals. Despite some stabilization in Q1, the company saw a 1.5% decline in organic revenue and margin compression. The near-term growth outlook is muted, with additional risks from AI advancements and regulatory changes. Although the company maintains its 2026 earnings guidance, its current valuation at 17.5 times forward earnings is not considered cheap, prompting a recommendation for investors to take profits.