Evotec reports Q1/2019 financial results on Tuesday, 14 May 2019. We forecast total revenues of €90m, +14% YoY and adjusted EBITDA of €20m, +43% YoY. While we anticipate robust growth for the EVT Execute business, we expect Q1 overall to be weaker than subsequent quarters this year due to modest milestone income in the EVT Innovate business, which we estimate at <€7m. The expected high EBITDA growth rate reflects the low level achieved in the prior year, where total milestone income was <€3m. Milestones are difficult to time and can therefore cause revenue volatility, with low milestone income also impacting quarterly profitability due to the high gross margin associated with this type of revenue. Nevertheless, we remain optimistic about FY2019 overall given the strong funding environment for biotech companies and the continuing outsourcing trend, with Evotec well positioned to continue benefiting from positive market dynamics. We maintain and reiterate both our OUTPERFORM recommendation and €28 target price.