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:	Upload
Recommendation:	Buy
from:	03.08.2026
Target price:	170
Last rating change:
Analyst:	Sebastian Droste

Strong AI demand supports growth
On July 30, 2026, Reply released its H1 financial results. Revenue growth was strong (7.4% yoy to EUR 1,311.9m), exceeding our expectation by 2.4%. Growth was driven by AI projects moving into production, supporting data, cloud and cybersecurity demand, while Silicon Shoring helped win consolidation projects. Region 1 benefited from Germany’s recovery, Region 2 improved following business development investments, and Region 3 was supported by strong UK government and defence demand. France and the US remained comparatively weak. The H1 EBITDA margin declined from 18.3% to 17.8%, in line, as productivity gains and personnel cost discipline were offset by higher services costs, regional investments and the absence of prior-year one-off income. Management did not publish guidance for 2026 but expects sustainable growth and disciplined cost management. Structural AI demand supports the investment case, although selective spending and regional weaknesses remain risks. We leave our target price unchanged at EUR 170 and confirm our Buy recommendation.
 
You can download the research here: REPLY_SPA_20260803
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Contact for questions:
Quirin Privatbank AG
Institutionelles Research
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60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/