Charles River Laboratories (CRL) is expected to provide an update on its New Approach Methodologies strategy at its investor day next week, RBC Capital Markets analysts said in a Wednesday note.

The European Medicines Agency's pilot program to validate and accept New Approach Methodologies is a "meaningful structural positive," analysts said.

RBC expects the company to also provide details on its long-range plan, with detailed growth and margin targets. It expects mid-to-high single-digit growth and margin expansion through 2029.

Analysts said they are on the lookout for details on the company's capital allocation, including commentary on accretive growth-oriented mergers and acquisitions in the near term, Discovery and Safety Assessment capacity in China, and the pace of further buybacks.

RBC retained an outperform rating and a $282 price target on the stock.

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