Berenberg cuts Italian IT firm Reply to 'hold', preferring to take profit

Reply SpA

22/11/2024 08:28

** Berenberg cuts Reply  REY.MI  to "hold" from "buy",
saying it is time to "take profit" as the valuation of the
Italian IT and consulting services seems a bit stretched
    ** The stock has jumped 29.4%​ this year though Thursday
    ** "It is time to take a breath", Berenberg says, after "the
company delivered a strong set of numbers, once again beating
both our and consensus estimates"
    ** While it sees Reply (comprising a network of companies
with a degree of independence) as a long-term winner in the
industry, its multiples are now above historical averages
    ** Brokerage also notes possible risks from failing to
attract and retain skilled employees and to identify new
technologies
    

 (Reporting by Alberto Chiumento)