Update shared on 17 Dec 2025
Fair value Decreased 13%Analysts have trimmed their price target on Evotec from €12.00 to €10.40. The revision reflects a higher perceived discount rate despite stronger expectations for revenue growth and profit margins.
What's in the News
- Novo Holdings is reportedly planning to sell up to 9.4 million Evotec shares, equal to about 5% of the company, reducing its stake from 8.4% and potentially altering the shareholder base (Key Developments).
- Partner Bayer has initiated preparations for a Phase 2 kidney disease study for BAY 3401016, triggering an expected milestone payment to Evotec in early 2026 and opening the door to further milestones and tiered royalties if development progresses (Key Developments).
- Evotec has launched a share repurchase program of up to 290,000 shares, worth €3 million, to be converted into ADS for employee share plans, under a Board authorized buyback valid through December 17, 2025 (Key Developments).
- The company confirmed its 2025 earnings guidance, forecasting group revenues between €760 million and €800 million, broadly in line with the prior year's €797.0 million (Key Developments).
- Evotec received a USD 25 million payment from Bristol Myers Squibb tied to progress in their long running neuroscience collaboration, supporting further work on a pipeline of disease modifying neurodegeneration programs (Key Developments).
Valuation Changes
- Fair Value Estimate reduced from €12.00 to €10.40, reflecting a moderately lower implied upside for the shares.
- Discount Rate increased from 5.86% to 6.59%, representing a modestly higher perceived risk profile in the valuation model.
- Revenue Growth raised slightly from 13.63% to 15.12%, indicating stronger expectations for top line expansion.
- Net Profit Margin upgraded from 11.05% to 14.76%, pointing to a meaningfully improved earnings outlook.
- Future P/E cut significantly from 20.1x to 13.2x, suggesting a lower valuation multiple applied to expected earnings.
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