Kepler Cheuvreux ups Reply to 'Buy' after Q3 results

Reply SpA

14/11/2025 08:16

** Kepler Cheuvreux raises Itlay's Reply REY.MI to "Buy" from "Hold" after third quarter results

** It says the digital service firm showed "operational resilience and strong execution", with Q3 organic growth at 5.3% and adjusted EBITDA up 22% YoY

** The brokerage adds that margin outperformance was driven by Al-enabled efficiency and lower costs, seeing further growth in Q4 and FY2025 margins above 19%

** It sees Reply's financial strength enabling M&A opportunities in AI, data and cybersecurity

** It forecasts a 7% growth in 2026 supported by steady demand, in line with company's projections

** The brokerage cuts Reply's PT to 152 eur/shr (from 155)

** Out of 11 analysts that cover Reply SpA, nine rate the stock "strong buy" or "buy," and ​two rate "hold" - LSEG data​

 (Reporting by Mirko Miorelli)

 ((Mirko.miorelli@thomsonreuters.com))