Update shared on 03 Dec 2025
Fair value Decreased 11%Analysts have lowered their price target on Evotec from approximately $9.47 to about $8.46. They cited a higher perceived discount rate and slightly softer long term revenue growth expectations, partially offset by improved profit margin forecasts and a more moderate future price to earnings multiple.
What's in the News
- The Board of Directors authorizes a new share buyback plan, signaling confidence in the company capital allocation strategy (company announcement).
- Evotec launches a share repurchase program of up to 290,000 shares for €3 million, with repurchased shares to be converted into ADS for employee share programs. The program is valid through December 17, 2025 (company announcement).
- The company confirms 2025 earnings guidance, with group revenues expected between €760 million and €800 million, compared with €797.0 million in 2024 (company guidance).
- Evotec receives a USD 25 million milestone payment from Bristol Myers Squibb for progress in their strategic neuroscience partnership, supporting further work on a pipeline of neurodegenerative disease programs (company announcement).
- Evotec is removed from the Germany MDAX Index and added to the Germany SDAX (Total Return) Index, reflecting a change in its index classification (index provider announcement).
Valuation Changes
- Fair Value Estimate has decreased moderately from €9.47 to €8.46 per share, reflecting a lower overall valuation.
- Discount Rate has risen slightly from 5.80 percent to approximately 6.56 percent, indicating a higher assumed risk profile.
- Revenue Growth has edged down from about 8.34 percent to roughly 7.85 percent, pointing to somewhat softer long term growth expectations.
- Net Profit Margin has increased meaningfully from around 5.45 percent to about 8.06 percent, implying improved profitability assumptions.
- Future P/E multiple has fallen significantly from roughly 37.0x to about 23.8x, suggesting a more conservative valuation framework for forward earnings.
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