Reply rises after Berenberg starts with 'buy'

Reply SpA

30/03/2023 09:56

** Shares in Italian IT consulting company Reply  REY.MI 
rise around 4% after Berenberg starts covering the stock with a
"buy" rating, saying its services will be "fundamental" in
shaping the digital future and pointing to its M&A firepower
        ** The Italian digital market is estimated to be worth
around 78 bln euros and grow at a double-digit CAGR from
2023-25, Berenberg says 
  
    ** It sees the company as among the main European reference
points in IT consulting
    ** The broker notes Reply operates through a network of
decentralised, market-niche companies, resulting in a business
model with higher margins and returns compared to its peers  
    ** "While its shares still trade 40% below their peak,
Reply's fundamentals and prospects have never been stronger," it
adds
    ** Given its ample liquidity -- Reply closed 2022 with a
net-cash position of 70.6 mln euros -- Berenberg expects Reply
to continue its M&A trajectory which could lead to a
consolidation in the U.S. market and an expansion in the Nordics

 (Reporting by Alberto Chiumento)
 ((alberto.chiumento@thomsonreuters.com))