The shares of the active ingredient researcher EVOTEC have increased noticeably following a positive analyst study by the private bank Berenberg.
• EVOTEC shares rise significantly according to Berenberg analysis
• AI trend is considered an important growth driver
• Progress in operating results
According to a current analysis by the private bank Berenberg, the shares of the active ingredient researcher EVOTEC reacted positively and increased in trading. The trigger is a continued optimistic assessment by analysts, who continue to rate the stock as “Buy” and have a price target of EUR 9.70, as dpa-AFX Analyzer reports.
Berenberg sees AI as a central growth driver
According to a study published on Tuesday, analyst Christian Ehmann highlights the growing importance of AI-supported drug development. More and more pharmaceutical and biotech companies are relying on artificial intelligence to develop new drugs faster and more efficiently.
However, these innovative approaches would need to be validated in practice. This is exactly where Berenberg sees a clear advantage for EVOTEC. According to dpa-AFX Analyzer, Ehmann emphasized that the corresponding active ingredients would now be subjected to an endurance test “in the real world”. The company is thus positioning itself as an important partner between digital research and practical application.
Shares react positively – investors take action
The market reaction didn’t take long to arrive: After the analysts’ assessment was published, the EVOTEC share temporarily rose by a strong 11.70 percent in XETRA trading to 5.25 euros. Investors thus honored the confirmed buy recommendation and the prospect that the company could be one of the potential winners of the AI trend in pharmaceutical research.
Even if the market environment for biotech stocks remains volatile, the price reaction shows that positive analyst opinions are currently having a significant influence on the sentiment around the share.
Progress in operating results provides impetus to the market
The latest business figures, which were published at the beginning of April, also provided EVOTEC with positive impulses on the stock market. Although the bottom line was that there was still a significant loss, this was almost halved from around 196 million euros in the previous year to just under 104 million euros. The company also confirmed that there will still be no dividend as there is no distributable profit and potential surpluses should be invested specifically in growth.
The mood was additionally supported by the prospect of possible additional income in connection with the Tubulis transaction and a stake from the US pharmaceutical giant Gilead Sciences, which further underpinned the company’s growth prospects in the market.
AI at the center of the investment story?
For the coming months, the AI trend will probably remain a decisive factor for the evaluation of EVOTEC. If the demand for AI-supported development projects continues to increase, the company could expand its role as a central partner Pharmaceutical industry expand further.
Bettina Schneider, editorial team at finanzen.net
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