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Original-Research: Reply - from Quirin Privatbank Kapitalmarktgeschäft

18.08.2025 / 13:47 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.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Reply

Company Name: Reply

ISIN: IT0005282865

Reason for the research: Update

Recommendation: Buy

from: 18.08.2025

Target price: 178

Last rating change:

Analyst: Sebastian Droste

Structural advantages result in strong resilience

On July 31, Reply released its Q2 2025 financial results. Revenue growth wa

strong at +8.3% yoy to EUR 606.7m, in line with our expectation (+7.9% yoy).

Growth was driven by sustained demand in AI, data management and cloud,

strong momentum in region 3 (+22.9% yoy; UK-led and boosted by the Soliriu

acquisition), and healthy expansion in region 1 (+6.4% yoy), while region 2

was softer (+1.4% yoy). Challenges included continued weakness in France,

price pressure, and higher automation that could reduce revenue per project,

though this is being offset by clients starting more projects and expanding

use cases, resulting in overall growth being supported by core markets. The

EBIT margin of Q2 2025 improved from 13.3% to 16.4% exceeding our estimate

of 15.3%, supported by an EUR 18.5m extraordinary income, a favorable

regional mix, and improved cost ratios. We have conducted a fundamental

revaluation of the business, reflecting the structural advantages of Reply'

agile, decentralized, and innovation-driven model, which support

above-average growth and margins compared to peers. With resilient demand in

growth markets, a robust balance sheet, and a clear focus on strategic AI

initiatives, the investment case remains compelling. We raise our target

price from EUR 125 to EUR 178 and change our recommendation to Buy.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=716f18bdb558694153cc73046bac8223

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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2185264 18.08.2025 CET/CEST

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