Analyst Brendan Smith of TD Cowen maintained a Buy rating on Evotec AG (EVO – Research Report), retaining the price target of $7.00.
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Brendan Smith’s rating is based on a combination of factors that highlight Evotec AG’s strategic positioning and financial outlook. Despite some uncertainties in pharma spending affecting Shared R&D revenues, the company has demonstrated resilience through the steady growth of its Just-Evotec Biologics (JEB) business. This growth is supported by strong order books and the expansion of customer relationships, which are expected to continue driving revenue.
Additionally, management’s reaffirmation of conservative yet achievable guidance for FY25, alongside cost-cutting measures and a focus on high-value areas, provides confidence in the company’s long-term prospects. The projected compound annual growth rate (CAGR) for topline revenues and anticipated improvement in EBITDA margins further reinforce the positive outlook. These factors collectively underpin Brendan Smith’s Buy rating for Evotec AG, reflecting a belief in the company’s ability to navigate near-term uncertainties and achieve sustainable growth.
In another report released on April 21, H.C. Wainwright also reiterated a Buy rating on the stock with a $8.00 price target.