Yesterday +10%! Top news drives shares of Evotec, Novo Nordisk, and CHAR Technologies!

CHAR Technologies: Will the stock now take off?

This news could end the consolidation of CHAR Technologies' stock and provide a tailwind for a new rally. The specialist in sustainable biomass energy solutions has commissioned its first commercial plant for the production of renewable energy and biocarbon. This marks an important step for the company as it moves from research to revenue generation.

The plant in Thorold, Canada, is expected to be fully ramped up in Phase 1 by the end of next month and then reach a production of 5,000 tons of biocarbon per year. At the heart of the plant is a high-temperature pyrolysis furnace developed by CHAR. The unique system can process wood residues and organic waste into natural gas substitutes, green hydrogen, or biochar. This makes steel manufacturers as well as AI data centers, which rely heavily on gas turbines, potential customers.

Once Phase 1 is up and running, construction of Phase 2 will begin to double the capacity. In addition, methanation plants will be installed to convert synthesis gas into renewable natural gas. The construction of an RNG pipeline feed point on site is also already planned.

CHAR Technologies is relying on strong partners for its expansion. These include steel giant ArcelorMittal and the Canadian BMI Group. This means that the company's growth story is likely to have only just begun. In light of this, the market capitalization of around CAD 38 million seems anything but high.

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Novo Nordisk: Results are convincing, but...

CHAR Technologies is not the only company with reason to celebrate; there is also positive news from Novo Nordisk. Yesterday, the pharmaceutical company reported on a successful Phase 3 study of its drug CagriSema. It is intended to be a further development of the blockbuster Wegovy. CagriSema combines two active ingredients for the treatment of obesity and is injected once a week. All tested dosages led to greater weight loss and a greater reduction in blood sugar levels compared to Wegovy.

Martin Holst Lange, Executive Vice President, R&D at Novo Nordisk, commented: "The results reinforce our belief that CagriSema could be the first amylin-based combination therapy and a promising treatment option for people with type 2 diabetes."

An application for approval for weight loss in the US was already submitted at the end of last year. Based on the current results, approval for type 2 diabetes is now also to be sought from the FDA. The share price trended positively following the announcement. However, the current level of around DKK 400 appears to be a stronger resistance level.

JPMorgan confirmed its "Overweight" recommendation for Novo Nordisk shares on Monday. However, the price target of DKK 350 is below the current price level. Analysts emphasize that the results should not be overrated. Although it outperforms its predecessor Wegovy, competitor Eli Lilly is of course also working on an improvement and is at a similar level.

Evotec: Analysts cause share price jump

Evotec shares caused a stir on the stock market yesterday. The German biotech company's shares rose by more than 10% at one point. Berenberg was responsible for this. In their initial study, analysts recommended Evotec shares as a "Buy". They see the fair value at EUR 10. Before the research was published, the stock was trading below EUR 6. By the afternoon, over 13 million Evotec shares had changed hands. Analysts praise Evotec as a globally recognized contract research organization. They say it is excellently positioned to meet the outsourcing needs and cost-efficient research requirements of pharmaceutical companies. They believe the current valuation is significantly too low.

With their price target, the Berenberg analysts are the new Evotec super bulls. According to marketscreener.com, 5 out of 7 analysts recommend buying the biotech stock, but no one else believes the security is worth EUR 10. Deutsche Bank, for example, sees the fair value at only EUR 6.

CHAR Technologies should achieve a breakthrough this year – in terms of commercialization and its share price. The commissioning of the plant in Thorold is an important milestone. The company also has financially strong partners on board for further expansion. Yesterday's jump in Evotec's share price shows that many investors are still keeping an eye on the stock. However, a sustained upward trend also requires positive operational news. There have been several positive operational announcements recently at Novo Nordisk. This seems to indicate that the stock has at least found a bottom.