Original-Research: Reply SpA (von Quirin Privatbank Kapitalmarktgeschäft): Buy

Original-Research: Reply SpA - from Quirin Privatbank Kapitalmarktgeschäft



20.05.2026 / 17:13 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:                       20.05.2026
     Target price:               170
     Last rating change:
     Analyst:                    Sebastian Droste



Strong AI momentum continues
On May 15, Reply released its Q1 financial results. Revenue growth was
stable (6.2% yoy to EUR 645.0m), in line with our expectation, driven by AI,
cloud, data, cybersecurity, Applications, Technologies,
Health/Government/Defense, Energy & Utilities, and Telco & High Tech, while
Processes, Automotive & Manufacturing, Logistics & Transportation, and
weaker Germany remained headwinds. EBITDA margin increased from 17.3% to
17.4%, in line, supported by AI-driven delivery productivity, Silicon
Shoring and lower contractor usage, while higher personnel costs and
investments in Region 2 weighed on profitability. Management did not publish
a guidance for 2026 but remained confident, citing continued demand in AI
and efficiency-driven customer projects. The investment case remains
supported by Reply's strong balance sheet, AI positioning and diversified
exposure, although selective customer spending and weak automotive demand
remain risks. We slightly decrease our target price to EUR 170 (previously
EUR 178) and confirm our Buy recommendation.




You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=b00940ea967ee49ca03405e546c7e1e0
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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2330928 20.05.2026 CET/CEST