Significant Possible Value of Evotec Shares?

Stock market atmosphere dims as Evotec departs MDAX, contrary to a recent analyst's advice to buy shares with a substantial target price.

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2025 September 14 . 6:47 AM

2 min read

Stock price of Evotec: Vast prospects for substantial growth?

Significant Possible Value of Evotec Shares?

Evotec's Sale of Toulouse Facility to Sandoz: A Strategic Milestone

In a surprising move, German life sciences company Evotec has agreed to sell its biologics development and manufacturing facility in Toulouse, France, to Sandoz for approximately 300 million dollars. The transaction, announced in late July, is seen as a significant milestone in Evotec's strategy to create a less capital-intensive business model.

Analyst Fynn Scherzler of an unnamed bank finds the sale surprising but believes it to be a strategic move for Evotec. However, Scherzler himself seems unconvinced about the potential impact of the sale on Evotec's overall outlook.

The planned transaction is expected to immediately improve Evotec's short-, medium-, and long-term revenue mix, profit margins, and capital efficiency. The sale of the Toulouse facility to Sandoz is seen as a milestone in Evotec's strategy to streamline their business model.

Meanwhile, Warburg Research, another analyst firm, has a positive outlook on Evotec. They have set a target price of 9.70 euros for Evotec shares, representing a potential increase of 68.81%. Analyst Charles Weston has slightly lowered his target price for Evotec from 11.90 to 11.20 euros but maintains his "Outperform" rating. Weston sees a potential upside of almost 100 percent in the stock.

However, the swap is due to funds that physically replicate indices (ETFs) needing to adjust, which can impact stock prices. This could be one of the reasons behind Evotec's stock performance. On Thursday, Evotec's stock suffered a significant setback, losing 2.7 percent and reaching 5.70 euros.

The decline from Monday's high of 6.28 euros results in a decline of almost ten percent. Evotec will have to leave the MDAX on September 22 and move down to the SDAX. Despite this, Evotec's stock started trading on Friday with a slight increase.

It's important to note that this is not the first time Evotec has been kicked out of the MDAX. A cyberattack once caused a delay in publishing the annual report for the 2022 financial year. With the publication of the audited annual report 2022 and the Q1 2023 interim report on May 12, 2023, Evotec fulfilled its reporting obligations and was reinstated on June 19, 2023.

Fielmann will take Evotec's place in the MDAX. No further information was provided about the potential impact of the transaction on Evotec's stock price or financial performance. The transaction between Evotec and Sandoz has not been further discussed since the initial announcement in late July.

In conclusion, while the sale of the Toulouse facility to Sandoz is a strategic move for Evotec, its impact on the company's overall performance remains uncertain. Investors are advised to closely monitor Evotec's financial performance and any further updates regarding the transaction.