Berenberg initiates Evotec at 'buy' saying recovery is not priced in

Sandoz AG

03/02/2026 07:56

** Berenberg initiates German drug discovery firm Evotec EVTG.DE with a "buy" rating, arguing the market has not priced in its recovery from the biotech downturn

** Evotec's valuation reset reflects a cyclical funding contraction, not a structural pivot, which was amplified by weak visibility around a recent acquisition from Sandoz SDZ.S, the broker says

** Earnings quality is set to improve from rising pharma R&D outsourcing demand and a shift in its Just – Evotec Biologics (JEB) unit to a more capital-light model

** "The stock currently prices in a prolonged bear case that we think is unlikely to persist," Berenberg analyst Christian Ehmann says, seeing an asymmetric risk-reward setup

** The market assigns limited value to Evotec's long-term partnerships and biologics capabilities, the broker adds

** Shares of Evotec are up 4.3% in early Frankfurt trade, after falling 29% in the last 12 months

 (Reporting by Maria Rugamer)

 ((Maria.Rugamer@thomsonreuters.com))