Andrea Randone, an analyst from Intermonte, maintained the Buy rating on Reply SPA. The associated price target is €187.00.
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Andrea Randone has given his Buy rating due to a combination of factors that highlight Reply SPA’s strong performance and potential for future growth. The company reported impressive third-quarter results with revenues increasing by 8.1% year-over-year, and organic growth maintaining a steady pace at 5.3%, slightly surpassing expectations. This consistent growth is complemented by robust EBITDA margins, which were 9% better than anticipated, driven by strong performances in key regions.
Furthermore, Reply SPA’s strategic acquisitions, such as Root16 LLC and RED Scientific Reply Limited, are expected to enhance its market position and contribute positively to its financials. The company’s solid cash position and management’s confidence in announcing more significant deals in the future add to its investment appeal. Despite a cautious outlook on organic growth acceleration, the company’s positioning in the IT consulting sector, particularly with opportunities arising from AI advancements, supports the Buy rating. The target price remains at €187, reflecting a strong belief in the company’s long-term growth potential.
In another report released on November 14, UBS also maintained a Buy rating on the stock with a €180.00 price target.