In a report released today, Douglas Tsao from H.C. Wainwright maintained a Buy rating on Evotec AG (EVO – Research Report), with a price target of $8.00.
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Douglas Tsao has given his Buy rating due to a combination of factors that highlight Evotec AG’s potential for growth and stability. The company reported first-quarter revenues for 2025 that were in line with expectations, and it has confirmed its guidance for the year, projecting group revenues between €840-880M. Additionally, Evotec has set a promising mid-term outlook with a revenue CAGR of 8-12% through 2028 and an expected adjusted EBITDA margin above 20% by the same year.
Evotec’s strategic initiatives to reduce costs, including the closure of its Cologne site and a focus on natural attrition and restricted hiring, are expected to yield further financial benefits in the coming quarters. The Just-Evotec Biologics segment has shown strong growth, countering the softness in the shared R&D segment, and expanded collaborations are helping to mitigate the effects of a challenging market environment. Furthermore, significant progress in collaborations, such as the one with BMS, has resulted in substantial payments, supporting the company’s financial health and growth trajectory.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $7.00 price target.