Evotec's Price Target Lowered to $7, Analyst Says Biotech Funding Softness to Hurt Revenue

Evotec's price target has been lowered to $7 from $8 by H.C. Wainwright due to the potential continuation of biotech funding softness, which may impact the company's revenue in the near-term. Despite this, the analyst maintains a Buy rating on the shares.

Evotec SE (XETRA: EVT) has seen its price target lowered by H.C. Wainwright from $8 to $7 following the company's second-quarter 2025 results. The analyst maintains a Buy rating on the shares, despite the downward revision. The move reflects concerns over the potential continuation of softness in biotech funding, which could impact Evotec's revenue in the near term [3].

The German drug discovery company reported second-quarter 2025 revenue of €171 million, a 15% decline quarter-over-quarter and a 6% drop year-over-year. The revenue decline was primarily driven by a 13% year-over-year decrease in Evotec’s Discovery & Preclinical Development business, partially offset by a 23% year-over-year increase in the Just - Evotec Biologics segment [3].

Evotec has revised its 2025 revenue guidance to €760-800 million, a reduction from its earlier guidance of €840-880 million. This adjustment comes as a result of weaker-than-expected performance in its Shared R&D base business. Despite the revenue downgrade, Evotec has kept its adjusted EBITDA guidance steady at €30-50 million and its R&D expenditure forecast at €40-50 million [3].

In other developments, Evotec and Sandoz AG are considering the potential sale of the Just – Evotec Biologics site in Toulouse, France. This potential transaction is part of the strategic evolution between the two companies. The Toulouse site is a key facility for biologics development and manufacturing. These developments were disclosed in Evotec’s latest filing with the U.S. Securities and Exchange Commission [3].

Evotec's shares have fallen by 9.3% this quarter and lost 8.4% so far this year. The company's reported EPS for the quarter was a loss of 12 cents, higher than the same quarter last year when the company reported EPS of -27 cents [1].

The current average analyst rating on the shares is "hold" with a breakdown of recommendations being 2 "strong buy" or "buy," no "hold," and 1 "sell" or "strong sell." The average consensus recommendation for the biotechnology & medical research peer group is "buy." Wall Street's median 12-month price target for Evotec SE is $7.00, about 45.6% above its last closing price of $3.81 [1].

References:

[1] Reuters. (2025). Evotec SE reports results for the quarter ended June 30, earnings summary. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U50DX:0-evotec-se-reports-results-for-the-quarter-ended-june-30-earnings-summary/

[2] The Pharma Letter. (2025). Biologics arm offsets softer discovery demand for Evotec in Q2. Retrieved from https://www.thepharmaletter.com/pharmaceutical/biologics-arm-offsets-softer-discovery-demand-for-evotec-in-q2

[3] Investing.com. (2025). Evotec stock price target lowered to $7 at H.C. Wainwright on soft revenue. Retrieved from https://www.investing.com/news/analyst-ratings/evotec-stock-price-target-lowered-to-7-at-hc-wainwright-on-soft-revenue-93CH-4191900