Evotec slips after MS cuts to 'equal-weight'
** Shares in Evotec EVTG.DE slip around 1%after Morgan Stanley cuts the German biotech firmto "equal-weight" from "overweight" and slashes its PT by more than a half, citing "lack of visibility"
** MS says the performance of Evotec's Shared R&D division is particularly uncertain, with the company forecasting further Q2 softness in testing and management relying on drug discovery to drive sales growth in H2
** "There is currently very limited visibility on the performance for the year," MS says
** It cuts its PT by 57% to12 euros to reflect shift in Evotec's business model and removal of the premium attached to "technology leadership and the shared pipeline"
** Broker cuts its revenue forecast by 3% for 2024 and 7-13% for 2025-8 and sees adj. EBITDA down 39-57% over 2025-2028 compared to its previous estimate
Reporting by Louis van Boxel-Woolf
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