Evotec models a strongly favorable risk/reward asymmetry and an early technical recovery, but a quality-floor breach, sharply declining revenue, and a still-confirmed downtrend keep the setup on exit watch.
Thesis pillars
- Quality Floor Breach→Stable
- Large Favorable Asymmetry→Stable
- Declining Revenue→Stable
- +2 more pillars — see the Why tab for full reasoning
Evotec SE (EVO) Stock Analysis
Recovery setup · Inst Constrain edge
Healthcare · Drug Manufacturers - Specialty & Generic
Sell if holding. Engine safety override at $2.85: Quality below floor (1.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10 and A.R:R 5.1:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; 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 $2.85: Quality below floor (1.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10 and A.R:R 5.1:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 54. Score 4.2/10, moderate confidence.
Passes 8/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 39d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.
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.
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Rating Breakdown
5 floor-breakers·1 ceiling hit
Revenue shrinking — -21.7% YoY. Growth thesis broken unless recovery story develops.static
Unprofitable operations — net margin -26.0%. Quality floor flags this regardless of sector context.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.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 $2.85: Quality below floor (1.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10 and A.R:R 5.1:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 54. Prior stop was $2.67. Score 4.2/10, moderate confidence.
Take-profit target: $4.35 (+52.6% upside). Prior stop was $2.67. Stop-loss: $2.67.
Quality below floor (1.7 < 4.0).
Evotec SE trades at a P/E of N/A (forward -15.3). TrendMatrix value score: 9.2/10. Verdict: Sell.
12 analysts cover EVO with a consensus score of 3.8/5. Average price target: $5.
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 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.