With the impact of the cyber attack now in numbers, we make Evotec one of our top picks in EU Healthcare. We now have clear visibility with large contracted revenue orders from BMS & Sandoz that give us high confidence that 2025 company sales targets will be exceeded, delivering 4x EBITDA growth 2023-25. Moreover, there is considerable upside risk to our forecasts from new contracts/alliances that we do not include in our forecasts. For example, we include very little new CDMO wins and only assu...
We have calculated the significant supply about to enter the biologics manufacturing space & analysed demand growth. Whilst the market assumes an improvement in utilisation from 2024, we forecast there will be significant overcapacity in the coming years resulting in even lower utilisation at an industry level. Our detailed bottom-up analysis shows that total mammalian cell supply is set to grow by 11% p.a. 2023-26 but demand is set to grow just 8% p.a. over the same period. However, much more c...
EVOTEC initiation of coverage BUY – EUR22TP | The CRO with biotech upside We believe Evotec is in a unique position in the biotech ecosystem, leveraging a profitable CRO business to build one of the more exciting and expansive pipelines in the industry. In recent years, Evotec increased investment in state-of-the-art drug screening and development platforms on the back of multi-omics data capabilities (panHunter and panOmics) and industrialized iPSC-based disease model screening. These platfor...
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 i...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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