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:	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: REPLY_SPA_20260520
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/