^

Original-Research: Reply SpA - from Quirin Privatbank Kapitalmarktgeschäft

20.11.2025 / 16:07 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

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 sale

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 wa

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 project

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 it

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/

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

View original content:

https://eqs-news.com/?origin_id=fa6a39ce-c621-11f0-be29-0694d9af22cf&lang=en

---------------------------------------------------------------------------

2233686 20.11.2025 CET/CEST

°