Evotec is a deeply discounted (65% drawdown) specialty drug services company with declining revenue, cash burn and repeated earnings misses; the only bull argument is a 139.5% gap to a thinly covered analyst target of $3.59.
Thesis pillars
- Cash Burn Weak Quality→Stable
- Shrinking Revenue Base→Stable
- Earnings Miss Pattern↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Oct 24, 2026
Evotec SE (EVO) Stock Analysis
Recovery setup · Inst Constrain edge
Healthcare · Drug Manufacturers - Specialty & Generic
Sell if holding. Engine safety override at $1.57: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 8.6:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.
Evotec SE operates as a drug discovery and development company in the United States, Germany, France, the United Kingdom, Switzerland, and internationally. It operates in two segments, Shared R&D and Just Evotec Biologics. The company is developing pharmaceutical products in... Read more
Sell if holding. Engine safety override at $1.57: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 8.6:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 64. Score 4.1/10, moderate confidence.
Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 0d<=7d. Suitability: speculative.
Recent developments
updated Nov 5, 2026Recent Developments — Evotec SE
Latest news
- NEWS Evotec Affirms FY2026 Sales Guidance of $656.004M-$702.039M vs $681.980M Est — benzinga Nov 5, 2026 neutral
- NEWS Evotec SE Reports Third Quarter and Nine-Month 2026 Results — fiscal.ai Nov 5, 2026
- NEWS Evotec Q3 EPS €(0.15) Misses €(0.14) Estimate — benzinga Nov 5, 2026 negative
- NEWS Evotec Q3 Sales €164.926M Miss €167.080M Estimate — benzinga Nov 5, 2026 negative
- NEWS JPMorgan Chase Crosses Voting-Rights Threshold in Evotec SE — fiscal.ai Nov 3, 2026 neutral
Latest item Nov 5, 2026 · Generated 2026-11-05T12:04:08Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
6 floor-breakers·1 ceiling hit
Revenue shrinking — -16.2% YoY. Growth thesis broken unless recovery story develops.static
Unprofitable operations — net margin -27.5%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $1.57: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 8.6:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 64. Prior stop was $1.47. Score 4.1/10, moderate confidence.
Analyst target: $3.60 (+129.6% upside). Prior stop was $1.47. Stop-loss: $1.47.
Quality below floor (1.6 < 4.0).
Evotec SE trades at a P/E of N/A (forward -8.3). TrendMatrix value score: 9.3/10. Verdict: Sell.
12 analysts rate EVO, with a consensus score of 3.4/5. 3 analysts publish price targets averaging $4.
What does Evotec SE do?Evotec SE operates as a drug discovery and development company in the United States, Germany, France, the United...
Evotec SE operates as a drug discovery and development company in the United States, Germany, France, the United Kingdom, Switzerland, and internationally. It operates in two segments, Shared R&D and Just Evotec Biologics. The company is developing pharmaceutical products in various therapeutic areas, such as oncology, autoimmune, cancer, diabetes, heart failure, immunology, pain and inflammation, infectious, kidney, liver, respiratory, fibrotic and metabolic diseases, and rare diseases. It is also developingcentral nervous system (CNS) and cardiometabolic diseases; and animal and women health. The company has collaboration agreements with Mass General Brigham and Joslin Diabetes Center focusing on cardiometabolic diseases; BMS antiviral; Novo Nordisk cell therapy; University of Oxford; German Cancer Research Center; University Hospital in Hamburg; University of Toronto, Harvard, and Yale; Johns Hopkins University; Ospedale San Raffaele (OSR); and National University of Singapore. In addition, it has a partnership with LAB282, LAB150, beLAB2122, beLAB1407, LAB eN², Danube Labs, VC Amplitude Ventures, LaB eN2, and 65LAB. Further, the company serves pharma and biotechnology companies, academic institutions, patient advocacy groups, and venture capital. Evotec SE has strategic collaboration with Almirall, S.A. for the development of novel therapeutics for severe skin diseases, including a range of immune-mediated inflammatory conditions. The company collaborate with Odyssey Therapeutics, Inc. to designs and develops AI based discovery platform to discover new treatments in autoimmune and inflammatory diseases. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.