Original-Research: Reply SpA (von Quirin Privatbank Kapitalmarktgeschäft): Buy
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Original-Research: Reply SpA - from Quirin Privatbank Kapitalmarktgeschäft
20.11.2025 / 16:07 CET/CEST
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Classification of Quirin Privatbank Kapitalmarktgeschäft to Reply SpA
Company Name: Reply SpA
ISIN: IT0005282865
Reason for the research: Update
Recommendation: Buy
from: 20.11.2025
Target price: 178
Last rating change:
Analyst: Sebastian Droste
Vertical AI solutions drive strong sales
On November 17, 2025, Reply released its 9M 2025 financial results. Revenue
growth was strong (+9.0% yoy) and in line with our expectation. Growth was
driven by continued demand for AI and agentic architectures, the scaling of
vertical solutions such as HR, procurement, payments and customer service,
expanding mission-critical cloud and defense projects, stronger
contributions from Region 1 and Region 3, solid performance in technology
and application businesses, and incremental support from funded R&D projects
and small M&A. Weakness in automotive and agency-related activities remained
a headwind, and process-related business declined, limiting even stronger
momentum. The EBITDA margin improved and was in line with our estimate,
supported by cost discipline, productivity gains, a favourable mix and a
one-off insurance gain, while structurally weaker activities probably
prevented further upside. Management expects stable demand for AI-driven and
outcome-based services and a solid finish to the year, although the
exceptionally strong Q4 of the prior year implies tougher yoy comparisons.
Region 2 remains a challenge due to its exposure to weaker agency-driven
business, while Regions 1 and 3 should stay supported by government, defense
and infrastructure projects. In our view, Reply remains attractive given its
strong positioning in high-demand AI architectures, diversified sector
exposure and consistent margin profile. We leave our target price unchanged
at EUR 178 and confirm our Buy recommendation.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=66537ebb968a59c1174bf48da4a940ba
For additional information visit our website:
https://research.quirinprivatbank.de/
Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/
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2233686 20.11.2025 CET/CEST
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