Evotec - CDMO Creates Buying Opportunity (BUY, TP EUR 30, 16 pgs)
In this note, we show that the recent sell-off has presented a good buying opportunity & the March 2nd CMD could be a catalyst. A pipeline failure in the EVT Innovate unit should not have caused a >30% share price decline in our view. The short interest is low vs recent levels and hence the current price is a good entry point as we believe the shares have likely found a floor. Our detailed analysis of Innovate shows it is fair to value it at €0 but that there could be considerable upside. Most importantly, we forecast 26% EBITDA growth this year & 29% CAGR growth 2021-26 as Just.Bio takes off. Our SOTP values EVT at 38x ‘22 EBITDA & 27x ‘23 EBITDA.For access to the full note, please contact Naresh Chouhan ( )
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