Evotec, A.H.T. Syngas Technology, Deutsche Telekom: Three stocks on the verge of a decisive turning point?

Evotec – Strategic focus and new partnerships raise hopes

Hamburg-based biotech specialist Evotec is starting the new year with clear strategic signals. The recent sale of a production facility in Toulouse to pharmaceutical giant Sandoz was more than just a transaction. It marks a strategic shift toward a less capital-intensive business model. The fresh liquidity of around USD 350 million relieves the balance sheet. It gives the management under CEO Christian Wojczewski leeway to focus on more profitable core businesses such as technology platforms. This focus on higher margins is a key component of sustainable profitability.

In parallel with the financial leverage, recent collaborations underscore the scientific relevance of the Company. The subsidiary Just – Evotec Biologics recently received further funding from the Gates Foundation. The goal is ambitious. Computer-aided design tools will be used to reduce the development costs of biotherapeutics in order to make them more accessible globally. In addition, partner Bayer has launched a Phase 2 clinical trial for an antibody against a rare kidney disease that emerged from joint research. Such milestones confirm the value of the Company's own platforms.

A third, often underestimated factor is coming to the fore: communication. Evotec has appointed a new head of investor relations and global communications, who reports directly to the top management. This integration signals the Company's desire to communicate its strategy and value creation more clearly to the capital market. Together with the strategic focus and validating partnerships, this forms a more credible foundation for the future. For investors, this paints a picture of a company undergoing active restructuring, addressing operational weaknesses and marketing its strengths in a targeted manner. The share is currently available for EUR 5.82.

A.H.T. Syngas Technology – Fresh capital for a strategic change of course

Dutch technology company A.H.T. Syngas Technology (AHT) successfully raised fresh capital at the beginning of the year. A convertible bond worth EUR 2 million was placed in full. These funds strengthen the balance sheet at precisely the right time, as the Company is undergoing a strategic transformation. The plan is to evolve from a pure plant manufacturer to an operator of its own energy generation plants. This so-called contracting model is intended to generate recurring revenues and more stable margins in the long term, moving away from the more volatile project business. The three-year bond with an interest rate of 5% was fully placed with investors, indicating a sustainable financing basis. The funds will flow directly into project preparation and market expansion.

The strategy is meeting with an extremely promising market. Europe is eagerly seeking alternatives to natural gas to make its energy supply climate-friendly. In this context, synthesis gas is becoming increasingly important. According to current forecasts, the global market for this could almost double by 2035, a potential that the industry has its sights set on. AHT is positioning itself precisely in this growth area. The Company is benefiting from the industrial trend toward decarbonization, as its decentralized plants generate climate-friendly energy from regionally available biomass and waste materials. In addition to the climate balance, this independence from fossil fuel imports is also becoming increasingly important in geopolitical terms. The market thus offers both ecological and economic incentives for customer acquisition.

The planned change is based on specialized technology. At its core is the Company's proprietary double-fire gas generator, which gasifies various biogenic residues. In recent years, AHT has standardized its processes, and has inventory in place to respond quickly to project inquiries. This operational efficiency is an important prerequisite for implementing the new contracting strategy and actually benefiting from broad market growth. The latest capital measure now gives the project the necessary financial leeway. This has also convinced the analysts at GBC, who have issued a price target of EUR 8.50. The share has already begun its turnaround and has gained over 60% since the beginning of the year. It is currently trading at EUR 3.90.

Deutsche Telekom – Solid, but with question marks

Deutsche Telekom ended 2025 with a strong operating performance and has revised its annual targets upwards several times. The group is generating robust cash flows and is expected to pay a higher dividend for 2025. Nevertheless, the share is trading well below the average analyst targets, which see potential upside of almost 40%. This gap between fundamental health and stock market valuation is at the heart of the current debate. For long-term investors, the current weakness could represent an entry opportunity, provided they believe in the strategic implementation.

The most important driver remains T-Mobile US, which continues to impress with strong customer growth. In Europe, the focus is on the massive, capital-intensive expansion of fiber optic and 5G networks. In addition, the Company is positioning itself in future fields such as cybersecurity and AI-based business solutions. This is where new profitable growth is to be generated. The big question is whether these investments will deliver the hoped-for returns and whether the digital division will ever be able to match the strength of the US business.

The continuing high capital expenditure on infrastructure expansion, which is weighing on free cash flow, argues against a quick turnaround. In addition, all telecommunications companies are facing the challenge of implementing AI investments profitably. A specific risk in Germany is the possible regulatory-enforced shutdown of old copper lines (DSL) to push the transition to fiber optics. This could accelerate customer losses if Telekom does not manage the migration perfectly. The valuation already appears to price in these uncertainties. The share price is currently trading at EUR 27.16.

The three companies are facing strategic turning points. Evotec is focusing on focus and partnerships to achieve sustainable profitability. A.H.T. Syngas Technology is using fresh capital to transform itself from a plant manufacturer to an operator in the growing synthetic gas market. Despite its operational strength, Deutsche Telekom must prove that its billion-euro investments in infrastructure and AI will deliver the hoped-for returns. All three offer opportunities for investors, but a successful turnaround depends on the consistent implementation of ambitious plans.