Evotec Stock: Long-term Exciting – the Direction is Right

Last Updated: 14. November 2023By

The Evotec stock initially reacted very positively to the quarterly figures presented last week and had climbed well above the 18 euro mark at one point. However, the paper has been volatile throughout the stock market year (and before that), currently trading at just under 18 euros (as of 14 November, around 11 a.m.).

Overall, the latest figures have left a positive impression, with sales higher than ever before and targets for the full year confirmed. In the long run, the Evotec stock offers potential, as the Hamburg-based company is well positioned in the field of drug discovery. But there are also risks, as Evotec should reach the profit zone only next year.

Good quarterly figures from Evotec After nine months of the year, the biotechnology company Evotec achieved 580 million euros in sales, 14 percent more than in the same period of the previous year. The third quarter was a record quarter in this regard, the first in the company’s history with sales of over 200 million euros.

The adjusted EBITDA also increased by 13 percent to a good 50 million euros. Ultimately, Evotec recorded a comfortable loss of 68 million euros after the first three quarters – compared to the deficit of the same period of the previous year (148 million euros) this is a significant improvement.

Evotec maintains its outlook for the full year. Sales should be between 750 and 790 million euros in 2023, the adjusted EBITDA between 60 and 80 million euros.

Evotec stock: the long-term prospects give cause for hope Evotec has now largely recovered from the hacker attack of the spring. And next year, the drug researcher should finally reach the break-even point. In addition, the company’s medium-term prospects are optimistic: by 2025, sales should climb to 1 billion euros and the EBITDA to at least 300 million euros.

For long-term oriented investors, the Evotec stock is certainly worth a look, the growth prospects could be worse and the company is well positioned. However, one should not completely lose sight of the risks. The industry is prone to fluctuations, Evotec will also have to invest a lot in the future and the paper is ambitious given the losses still expected in 2023.