Evotec: Investment case remains troubled

Research evidence excerpt

Evotec: Investment case remains troubled

Deutsche Bank

Research

Rating Company Date

Hold Evotec 16 July 2026

Forecast Change

Europe

Germany

Reuters Bloomberg Exchange Ticker Price at 15 Jul 2026 (EUR) 3.51

EVTG.DE EVT GR GER EVTG

Price Target (EUR) 3.50

Healthcare

ADR ISIN 52-week range (EUR) 7.46 - 3.75

Life Sciences Tools &

EVTCY US30050E1055

Diagnostics

Investment case remains troubled

Valuation & Risks

Fynn Scherzler

Takeaway summary Research Analyst

The reasoning for Evotec's profit warning and the magnitude came as a surprise to +49-69-910-40764

us. The warning was predominantly driven by Discovery & Product Development

Falko Friedrichs

(D&PD) and made more evident how contract-driven this segment is. While Evotec Research Analyst

insists the overall CRO environment is improving, revenue/milestone phasing was +49-69-910-36270

pushed out and negotiations are delayed for its strategic partnerships. If we dissect

Jan Koch, CFA

the revenue and earnings shortfall:

Research Analyst

+49-69-910-47428

n For 40% of the shortfall, it seems Evotec has some visibility that these

revenues will likely materialize in 2027, as they are tied to existing contracts Sachin Gadilingappa

in both segments. Research Associate

n However, we are not so sure about the 45% ascribed to ongoing contract

negotiations in D&PD. Here, Evotec indicates revenues may materialize in

Key changes

2027 and beyond and are "subject to deal structure", which affects cash/

TP 4.50 to 3.50 ↓ -22.2% revenue mix contributions.

Source: Deutsche Bank

n The remaining 15% tied to D&PD sales to revenue conversion seem rather

certain and appear to be only timing. Price/price relative

As a result, adj. EBITDA losses are expected to widen materially in 2026 vs. 2025,