Evotec: HC Wainwright & Co. Maintains Buy Rating, PT Down to $7

Evotec: HC Wainwright & Co. Maintains Buy Rating, PT Down to $7

Evotec SE (EVO) reported its first-half 2025 results, with the company posting a quarterly adjusted loss of 12 cents per share, up from a loss of 27 cents per share in the same period last year [1]. Revenue decreased by 6% to €171.24 million compared to the prior year, falling short of analyst expectations of €205.14 million. The company's quarterly loss amounted to €43.48 million, while shares experienced a 9.3% drop during the quarter and an 8.4% decline year-to-date [1].

Analysts had expected a loss of 13 cents per share, with estimates ranging from -18 cents to -8 cents per share. The average earnings estimate for the quarter increased by about 3.7% in the last three months, with no revisions in the last 30 days. The current average analyst rating is "hold," with 2 "strong buy" or "buy" recommendations, no "hold" recommendations, and 1 "sell" or "strong sell" recommendation. The consensus recommendation for the biotechnology & medical research peer group is "buy" [1].

HC Wainwright & Co. maintained its "buy" rating on Evotec SE, but lowered its price target to $7.00 from $12.00, reflecting the company's recent earnings performance and guidance for the full year. The new price target is about 45.6% above the last closing price of $3.81 [1].

Evotec's first-half 2025 results were in line with expectations, with adjusted EBITDA of -€1.9 million, compared to -€0.5 million in the same period last year. The company expects full-year 2025 group revenues to range between €760 million and €800 million, with R&D expenditures ranging from €40 million to €50 million. Adjusted group EBITDA is expected to reach between €30 million and €50 million [2].

Evotec's shares have been volatile, with a 9.3% drop in the second quarter and an 8.4% decline year-to-date. The company's recent earnings performance and guidance may impact investor sentiment, but the "buy" rating from HC Wainwright & Co. suggests that the market still sees potential in Evotec's long-term prospects. Investors should closely monitor the company's progress and earnings releases to make informed decisions.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U50DX:0-evotec-se-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[2] https://seekingalpha.com/news/4484553-evotec-se-reports-1h-results