Evotec shares surge 10.23% after-hours after Berenberg initiates coverage with buy rating and €10 target.

Evotec AG surged 10.23% in after-hours trading following Berenberg’s initiation of coverage with a “Buy” rating and a €10 price target, signaling undervaluation of its biologics platform and long-term partnerships. The German broker cited stabilized biotech funding levels, Evotec’s asset-light structure via its Sandoz biosimilar collaboration, and cost-efficient R&D outsourcing demand as key catalysts. Berenberg also highlighted intact capabilities despite near-term execution challenges, forecasting EBITDA improvement to 10.3% by 2026. The report positioned Evotec at the intersection of rising pharmaceutical outsourcing and capital-efficient innovation, with a revised partnership model accelerating cash flows and reducing risk. Analysts noted the market’s current discount on its biologics expertise and long-duration contracts, suggesting normalization in demand could drive re-rating. The move aligns with broader investor optimism amid the firm’s strategic shifts and improved earnings visibility.