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August 9th, 2023 | 07:00 CEST

After BioNTech shock: Evotec, Morphosys and Cardiol Therapeutics emerge as the new biotech favorites

  • Biotechnology
Photo credits: Bayer AG

BioNTech startled investors and analysts with its quarterly figures on Monday. Yet the biotech segment has actually developed positively in recent months. Several stocks are currently going full throttle, and S&P's sector index also outperformed the S&P 500 and MSCI World in July. This could finally signal the end of the underperformance of recent years, and biotech stocks could be celebrating a comeback. On the German stock charts, Evotec and Morphosys are among the high flyers. Both shares have performed strongly since April. Cardiol Therapeutics also looks promising from a technical chart perspective, and analysts see a price potential of over 200%. In contrast, there is currently no reason to buy BioNTech. Instead, investors should also bet on strength.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: EVOTEC SE INH O.N. | DE0005664809 , MORPHOSYS AG O.N. | DE0006632003 , CARDIOL THERAPEUTICS | CA14161Y2006

Table of contents:

    David Elsley, CEO, Cardiol Therapeutics Inc.
    "[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.

    Full interview


    Cardiol Therapeutics: First Berlin sees over 200% share price increase potential

    Shareholders of Cardiol Therapeutics currently have reason to rejoice. The share price has risen from EUR 0.45 to around EUR 1.00 since April. Nevertheless, the Company is still only valued at around EUR 70 million. The analysts of First Berlin recommend the Cardiol shares as a buy, with a price target of EUR 3.30. Further price increases can now also be contributed by US investors, as the biotech company regained compliance for continuing trading on the Nasdaq. But what makes this Canadian company so interesting?

    Cardiol Therapeutics is focused on diseases of the cardiovascular system. Research is being conducted into anti-inflammatory and anti-fibrotic therapies. The most advanced is the development of CardiolRx™. It is intended to be used as an oral solution for the treatment of debilitating forms of inflammatory heart disease that affect a younger age demographic, and where treatment is not addressed adequately by currently available therapies. The effectiveness of CardiolRx™ is currently being investigated in a Phase II study in the US involving 25 patients with recurrent pericarditis and an international Phase II study involving 100 patients with acute myocarditis. Results for both studies are anticipated in the coming year. Analysts from First Berlin estimate Cardiol's annual revenue potential from these two indications to be around USD 1.5 billion. Cardiol is also in a solid financial position with cash and cash equivalents sufficient to finance research until 2026. Therefore, the Company is considered "significantly undervalued."

    Evotec: Buy after the profit warning?

    In contrast, Evotec already weighs in at almost EUR 4 billion. This biotech share has also developed positively in recent months and is now trading at around EUR 22. At the end of April, it was only EUR 16.60. Even a hacker attack and an earnings warning did little to harm the share. Management emphasized that it is on track to achieve its medium-term targets by 2025. Optimization measures are also expected to contribute to this. For example, costs of up to EUR 25 million are to be saved. Analysts, for the most part, remained unfazed by the profit warning. Among the optimists is Warburg, with a price target of EUR 30. For the analysts, the slight price slide offers an opportunity to enter. For Deutsche Bank, the Evotec share is a hold. The analysts reduced sales and earnings expectations after the hacker attack. Their price target is EUR 20, around 10% below the current price.

    Morphosys: Important study results expected at year-end

    Things are getting exciting at Morphosys today. The Company is releasing its numbers for the second quarter and the first half of the year. Additionally, a conference call is scheduled for tomorrow. After the significant rise in the share price in recent months, expectations are likely to be high. After all, the share has almost doubled since the beginning of April to EUR 27.

    Analyst opinions vary widely when it comes to the question of how the share will fare. According to UBS, there is still a lot more potential. The analysts take a positive view of the Morphosys hopeful Pelabresib. There should be new study results on Pelabresib later in the year. The analysts' price target is EUR 47. Accordingly, they recommend the share as a "buy". In contrast, Goldman Sachs rates the Morphosys share as "Sell". In order to reach the analysts' price target of EUR 12.50, the share would have to more than halve in value. The analysts do not expect any new impetus from the quarterly figures, as the important study data will still take several months to emerge. Morphosys currently has a market capitalization of almost EUR 1 billion.

    Investors appear to be returning to biotech stocks, although certainly not to all of them. BioNTech is currently clearly on the sidelines. In contrast, the charts of Cardiol Therapeutics, Evotec and Morphosys show positive momentum. Due to the low valuation and high cash position, analysts see the greatest upside potential in Cardiol.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author

    Related comments:

    Commented by Fabian Lorenz on May 16th, 2024 | 08:00 CEST

    Share price shock at Siemens Energy! What are BioNTech and Cardiol Therapeutics doing?

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    The Siemens Energy share has been one of the surprises of recent months. It has more than doubled since the beginning of the year. Is a crash now imminent? Yes, if you believe Bernstein. Their analysts are shocking us with a horror price target. The Cardiol Therapeutics share performed even better than Siemens Energy in 2024. Despite the 150% rally, analysts see upside potential for the cardiovascular disease specialist. Things will get really exciting at the beginning of June when new study results are due. BioNTech, on the other hand, is currently failing to convince analysts. Reactions to the latest quarterly figures were modest.


    Commented by Stefan Feulner on May 14th, 2024 | 07:30 CEST

    Bayer, Defence Therapeutics, Novavax - Major events

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    The biotechnology sector is still on the move and is currently characterized by a high degree of volatility. For instance, BioNTech, a former star during the pandemic, reported a net loss of EUR 315 million in the first quarter. The Mainz-based biotech now wants to focus more on the development of its cancer drugs due to the slump in demand for COVID-19 vaccines. However, for years, innovative, undiscovered companies have existed in this billion-dollar market that could, with their technologies, become the new high-flyers in the biotech industry.


    Commented by André Will-Laudien on May 9th, 2024 | 07:00 CEST

    Biotech and pharma stocks finally follow suit! Novo Nordisk, Bayer, BioNTech, Vidac Pharma and Evotec on the buy list

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    Things looked very different at the beginning of the year. After a brilliant rally in the Nasdaq Biotech Index at the end of last year, investors thought the upswing could continue in 2024. So far, this hope has not been confirmed. The main focus for the industry is the refinancing conditions. These have gradually deteriorated, as stubborn inflation is keeping central bank interest rates high. And judging by the wording of central bankers, the next interest rate cut does not seem to be penciled in yet. However, if it happens in the summer, things will likely move quickly for the life sciences sector. Then a quick sector rotation is the order of the day! Here is our buy list for the upcoming event.