CRL Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: CRL's undervaluation and potential FDA response improvements, combined with decreasing volatility over time, suggest upside recovery potential.




Bearish Case: Persistent high implied volatility, flat recent price action, and current backwardation indicate continued market skepticism and downside risks.




Potential Outcomes: Resolution of FDA issues boosts stock (50%), continued high volatility affects price stability negatively (40%), moderate growth if undervaluation corrects (10%).




Trading Oracle: Given high implied volatility and backwardation, consider a short-term credit spread strategy. Sell March 2025 puts to capitalize on premium decay. This exploits current uncertainty and bearish sentiment while offering a favorable risk-reward ratio. Target expiration in three months.



February 16, 2025


Charles River Laboratories International Forecast

CRL        Charles River Laboratories International
















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