BofA Securities on Evotec (EVO): guidance 'embeds a high degree of reliance on 2H recovery'

BofA Securities analyst Michael Ryskin reiterated an Underperform rating and $3.00 price target on Evotec (NASDAQ: EVO)

The analyst commented, "Earlier today, EVO reported FY25 results broadly in-line, with 4Q revenue of €253mn and Adj. EBITDA of €58mn. FY26 guidance (revenue of €700-780mn; adj EBITDA €0-40mn) was reiterated, consistent with the 3/10 update (see report), but in our view embeds a high degree of reliance on 2H recovery. With limited visibility into sustained improvement in early-stage demand and a major transformation initiative underway, we see a long runway until Evotec can demonstrate a higher level of execution, leaving limited room for upside in the near term. We update our model to reflect the formal FY26 guidance. We reiterate our Underperform and $3 PO, but shift our valuation to EV/Sales (from EV/EBITDA, given near-term profitability challenges), and base it off 1.5x 2027e EV/Sales, in-line to slight discount to other CROs."

For an analyst ratings summary and ratings history on Evotec click here. For more ratings news on Evotec click here.

Shares of Evotec closed at $2.58 yesterday.

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