Following strong FY2018 financial results which exceeded our and consensus estimates, our revenue and adjusted EBITDA forecasts are broadly unchanged, and we raise our target price (“TP”) to €28 per share. Evotec is a structural growth story and we expect the positive momentum to continue for many years to come, driven by the following factors: (1) Increasing outsourcing of R&D across the value chain as pharma and biotech companies look for external innovation partners to shift fixed into variable costs, shorten development times and improve success rates; (2) consolidation in the fragmented contract research organisation (“CRO”) industry; (3) substantial upside from Evotec’s co-owned pipeline, the value of which grows as existing projects advance through clinical development and new ones are added; (4) leadership in cutting-edge technology platforms, particularly induced pluripotent stem cells (“iPSC”), artificial intelligence (“AI”) / machine learning (“ML”), sophisticated pan-omics (e.g. genomics, proteomics, transcriptomics), and targeted protein degradation.