In a report released today, Andrea Randone from Intermonte maintained a Buy rating on Reply SPA, with a price target of €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 financial performance and strategic positioning. The company reported stable organic growth of 5.3% quarter-over-quarter, which slightly exceeded expectations, and demonstrated excellent margins despite some one-off impacts. Notably, the EBITDA for the quarter was significantly higher than anticipated, driven by a favorable resolution of customer litigation and improvements in EBITDA margins across various regions.
Furthermore, Reply SPA’s focus on artificial intelligence and its specialized offerings in this domain present promising growth opportunities. The company’s ability to secure new contracts in AI-related fields, along with its robust M&A pipeline, suggests potential for further value creation. Despite some market price pressures, productivity gains are effectively maintaining strong profitability. These factors, combined with the company’s strategic efforts to enhance its presence in the US, underpin Randone’s confidence in Reply SPA as a compelling investment opportunity.
In another report released today, UBS also maintained a Buy rating on the stock with a €180.00 price target.