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

Classification of Quirin Privatbank Kapitalmarktgeschäft to Reply SpA

Company Name:	Reply SpA
ISIN:	IT0005282865
Reason for the research:	Update
Recommendation:	Buy
from:	13.03.2026
Target price:	178
Last rating change:
Analyst:	Sebastian Droste

Growth driven by AI projects On March 12, 2026, Reply released its full-year financial results. Revenue growth was stable (+8.0% yoy) and in line with our expectation. Growth was mainly driven by demand in AI, data, cloud and cybersecurity services. Health, government and defense showed the strongest sector momentum, followed by energy and utilities and tech/IT. Partnerships with OpenAI, AWS and Mistral as well as newly launched start-ups broadened the offering. Region 3 was the main geographical growth driver supported by acquisitions, while Region 2 remained weak. At the same time, logistics and transportation, automotive and manufacturing as well as media were under pressure, indicating uneven demand across sectors. The EBITDA margin increased from 17.8% to 18.8%, exceeding our estimate by 0.5ppt, supported by a EUR 24.0m provision release. Personnel and service costs increased, while France remained a drag on profitability due to restructuring. Management did not provide a guidance but expects demand to gradually improve in 2026, supported by AI-related projects. However, growth may remain in the single-digit range due to productivity gains and smaller project sizes. We leave our target price unchanged at EUR 178 and confirm our Buy recommendation. You can download the research here: REPLY_SPA_20260313 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/