An outstanding Q4 topped off Evotec's strong financial results for FY2019, which exceeded both our and consensus estimates at both the top and bottom lines. Revenues totalled €446m (+19% YoY) with growth in the base business driven by solid performance from both the Execute and Innovate segments. 2020 may prove a challenging year for Evotec, with the COVID-19 crisis likely to disrupt operations of Execute's services business and potentially delay milestone revenue from the coowned Innovate pipeline. Alongside management, we are unable to quantify the full extent of the impact of COVID-19 on Evotec at this stage. However, a strong balance sheet should enable Evotec to emerge relatively unscathed with the company's structural growth story remaining unchanged in the mid to long term, in our view. We reiterate our target price ("TP") of €28 and will keep our estimates under review, dependent on further developments.
27 Mar 2020
Stellar 2019. Expected to weather the COVID-19 storm.
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Stellar 2019. Expected to weather the COVID-19 storm.
An outstanding Q4 topped off Evotec's strong financial results for FY2019, which exceeded both our and consensus estimates at both the top and bottom lines. Revenues totalled €446m (+19% YoY) with growth in the base business driven by solid performance from both the Execute and Innovate segments. 2020 may prove a challenging year for Evotec, with the COVID-19 crisis likely to disrupt operations of Execute's services business and potentially delay milestone revenue from the coowned Innovate pipeline. Alongside management, we are unable to quantify the full extent of the impact of COVID-19 on Evotec at this stage. However, a strong balance sheet should enable Evotec to emerge relatively unscathed with the company's structural growth story remaining unchanged in the mid to long term, in our view. We reiterate our target price ("TP") of €28 and will keep our estimates under review, dependent on further developments.