Quirin Privatbank Updates Recommendation for Reply to 'Buy'

On August 18, 2025, Quirin Privatbank Kapitalmarktgeschäft updated its recommendation for the technology company Reply. The bank has shifted its stance to a 'Buy' with a new target price of EUR 178, up from EUR 125. This revaluation follows Reply's release of its second quarter 2025 results, which showed a revenue growth of 8.3% year-on-year, reaching EUR 606.7 million, meeting the bank's expectations.

Reply's growth is attributed to strong demand in AI, data management, and cloud, particularly in the UK-led region 3, which saw a 22.9% increase. Despite softer performance in region 2 and challenges in France due to price pressures and automation impacts, the company's EBIT margin improved to 16.4%.

The bank emphasizes Reply’s structural advantages, including its agile, decentralized, and innovation-focused model, which supports its growth and competitive position in the market. Thus, Quirin Privatbank underscores a strong investment case driven by resilient demand and strategic initiatives in AI.