EVO - Evotec: Still A Speculative Buy After A Significant Decline

2024-04-24 09:41:02 ET

Summary

• Evotec SE's stock has declined over 30% in a single day, marking a 5-year decline of over 56%.
• The company's 2023A results met guidance, but the market expected more from the 2024E forecasts.
• The change in reporting structure and the stepping down of the CEO have also contributed to the decline in share price. I am still saying "Spec BUY", but with care.

Dear readers/followers,

Drug discovery investing is something I am very careful about. That is why in my former article on Evotec SE ( EVO ), which by the way you can find here , I called the company a "spec BUY" - and even in the title made a case for why a larger, scaled competitor was, in fact, a better investment.

However, given the morning's price action and the fact that I am the latest contributor to share my views on this company and that I do have a small position in the company, this is a perfect opportunity for me to be clear about my convictions and where, if anywhere, I have made a mistake....

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