Evotec slips after Jefferies cuts on uncertain strategy, market recovery timing

Evotec SE

07/10/2024 08:16

** Shares in Evotec  EVTG.DE  slip around 2% after Jefferies
cuts the biotech company to "hold" from "buy," pointing to
uncertain timing of market recovery and risks of further delays
to its strategy update
    ** The broker remains cautious on the speed of market
recovery,  seeing it in early 2025 at the earliest, while noting
slower funding flows and continued pressure on pharma R&D
budgets
    ** It also sees risks that Evotec will not provide a
strategy update with its Q3 results, leading to a lack of
clarity on the company's 2025+ trajectory
    ** "Visible near-term catalysts for investors to attribute
meaningful value to partnered assets are also scarce," it adds
    ** Out of 12 analysts that cover Evotec, seven rate the
stock "strong buy" or "buy", ​four rate it "hold" and one rates
it "sell" - LSEG

 (Reporting by Chiara Holzhaeuser)
 ((Chiara.Holzhaeuser@thomsonreuters.com))