Evotec (XTRA:EVT) Valuation Check After Toulouse Plant Sale and Shift to Asset‑Light Model

Evotec (XTRA:EVT) just closed the sale of its Just, Evotec Biologics Toulouse plant to Sandoz and handed over an indefinite license to its continuous manufacturing tech, signaling a deliberate pivot toward a more asset-light model.

See our latest analysis for Evotec.

The strategic sale comes after a tough stretch, with a year to date share price return of negative 37.21 percent and a one year total shareholder return of negative 39.5 percent. This suggests sentiment is still rebuilding, even as management pivots toward a leaner, potentially higher margin model.

If Evotec's shift has you rethinking where growth might come from next, it could be a good moment to explore healthcare stocks as potential alternatives in the sector.

With the shares still down heavily over three and five years, but trading at a steep discount to analyst targets and intrinsic value estimates, is pessimism now excessive or is the market rightly pricing in only modest future growth?

Most Popular Narrative: 38.2% Undervalued

Evotec's most followed narrative points to a fair value of €8.46 per share versus the last close at €5.23, framing a meaningful upside gap.

Successful execution of the Toulouse site sale to Sandoz and the pivot to a CapEx lighter business model will immediately improve Evotec's revenue mix, profit margins and capital efficiency, expected proceeds (~USD 300m), milestone payments and royalties will both strengthen liquidity and boost earnings quality over time.

Read the complete narrative.

Curious how this leaner model, rising margins, and a richer earnings mix combine into that valuation gap, and what growth path it quietly assumes? The full narrative lays out the trajectory.

Result: Fair Value of €8.46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained weakness in early stage biotech funding, or a setback with a major partner like BMS or Sandoz, could quickly challenge that upside case.

Find out about the key risks to this Evotec narrative.

Build Your Own Evotec Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a personalised view in minutes with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Evotec.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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