Evotec stock in 2024: What comes after the turbulence?

Last Updated: 9. Januar 2024By

Evotec stock has started the new 2024 trading year on a very poor note. Following the surprising resignation of long-time CEO Werner Lanthaler last week, the biotech company’s stock from the MDAX has plummeted by around 20%. The resignation was due to personal reasons and a successor has not yet been determined.

Additional uncertainty was caused by insider transactions by Lanthaler, which were published at the same time and date back several years. It is still unclear whether this could lead to official investigations. In the meantime, the Evotec stock has stabilized and is now trading almost 10% higher at around 18.50 euros (as of January 9, 2024, 10:00 am).

Sudden CEO Resignation at Evotec Werner Lanthaler had been CEO of Evotec for almost 15 years and his resignation in the first week of the year was as sudden as it was surprising. According to the company, Lanthaler will not fulfill his valid contract until 2026 due to personal reasons. Lanthaler confirmed that 2023 was physically and overall extremely challenging.

The timing of the resignation is particularly suspect as Evotec had also published several insider deals by Lanthaler, which date back several years. According to regulations, insider transactions by board members must be reported within a few days. Whether the resignation of the long-time CEO could be related to this and whether there will be an investigation by Bafin regarding the transactions remains purely speculative at this time.

Evotec Stock: Anything is Possible in 2024 The resignation, circumstances, and uncertain succession have caused uncertainty among investors. The Evotec stock plummeted by a whopping 20% last Thursday, wiping out the gains from the end-of-year rally. However, there was also some positive news: Within the cooperation with Bristol Myers Squibb, Evotec has received a milestone payment of $25 million for a joint research pipeline.

For the past year, Evotec is still expecting a revenue between 750 and 790 million euros and an adjusted EBITDA between 60 and 80 million euros. However, the Hamburg-based company is still in the red in 2023. In the medium term, Evotec is on a growth trajectory: By 2025, revenue is expected to reach 1 billion euros and EBITDA to climb to at least 300 million euros โ€“ in 2024, the company is expected to reach the break-even point for the first time.

Despite the turbulent start to the year, the Evotec stock remains an interesting option for more risk-taking investors who can handle potential fluctuations. However, considering the current (profit) figures, the stock is already highly valued. If the CEO’s resignation leads to further investigations by Bafin, investor confidence may continue to decrease in the short term. On the other hand, the potential for growth in the drug researcher is significant and 2024 is expected to mark the long-awaited turning point in terms of net profit.

Source: https://aktienscreener.com