Evotec reported strong Q1/2019 results that comfortably exceeded our and consensus estimates on the top and bottom line, driven by solid performance across both business segments (EVT Execute and EVT Innovate). Once again, the results reflect that Evotec is well positioned to benefit from the accelerating macro trend towards external innovation in drug discovery and beyond. On the results call, management stated that “we comfortably confirm our guidance”, which may appear conservative in light of Q1 performance. We have made small upward revisions to our FY2019 forecasts, which are marginally above company outlook, and believe that the risk to our numbers is to the upside. We reiterate our OUTPERFORM recommendation and €28 target price, which is set at a premium to our fair value of €25, as we expect Evotec shares to benefit from positive momentum and scarcity value.
16 May 2019
Macro trend drives strong start to the year
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Macro trend drives strong start to the year
Evotec SE (EVT:WBO) | 0 0 0.7% | Mkt Cap: 2,149m
- Published:
16 May 2019 -
Author:
Brigitte de Lima, PHD CFA -
Pages:
11
Evotec reported strong Q1/2019 results that comfortably exceeded our and consensus estimates on the top and bottom line, driven by solid performance across both business segments (EVT Execute and EVT Innovate). Once again, the results reflect that Evotec is well positioned to benefit from the accelerating macro trend towards external innovation in drug discovery and beyond. On the results call, management stated that “we comfortably confirm our guidance”, which may appear conservative in light of Q1 performance. We have made small upward revisions to our FY2019 forecasts, which are marginally above company outlook, and believe that the risk to our numbers is to the upside. We reiterate our OUTPERFORM recommendation and €28 target price, which is set at a premium to our fair value of €25, as we expect Evotec shares to benefit from positive momentum and scarcity value.