Summary
- Evotec remains a speculative ‘buy’ with a maintained share price target, reflecting deep undervaluation despite a >50% market cap decline.
- EVO’…
Summary
- Evotec remains a speculative ‘buy’ with a maintained share price target, reflecting deep undervaluation despite a >50% market cap decline.
- EVO’s biologics segment shows positive EBITDA and 11% growth, but the larger Discovery segment remains weak, down 12% in 3Q25.
- Positive free cash flow, reduced leverage, and a robust partner pipeline ($200M+ in signed orders) support fundamental safety, with no imminent bankruptcy risk.
- Substantial upside exists if the Discovery segment turns; however, risk remains elevated due to market dynamics, contract struggles, and unpredictable commercial asset outcomes.
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There comes a time in an investment where you need to ask yourself whether you are looking at a potential capital loss. For Evotec (EVO), I believe that possibility is at least worth asking
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