^

Original-Research: Reply S.p.A. - from GBC AG

12.11.2024 / 11:01 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group AG.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of GBC AG to Reply S.p.A.

Company Name: Reply S.p.A.

ISIN: IT0005282865

Reason for GBC Italian Champions

the research:

Recommendatio- BUY

n:

Target price: EUR 170.00

Target price 31.12.2025

on sight of:

Last rating

change:

Analyst: Cosmin Filker, Matthias Greiffenberger, Marcel

Goldmann, Marcel Schaffer, N. Ripplinger, E. Geßwein

Dear investors,

For the second year in a row, we have selected 13 Italian small and mid-caps

that we consider to be particularly promising as part of GBC's "Italian

Champions" study. As in the previous year, our selection is highly

diversified across a range of sectors and covers a broad spectrum of market

capitalisations, ranging from EUR32 million to EUR5.3 bn. Eight companies from

last year's study have been included in this year's selection, leaving us

with five new investment ideas.

Over the past twelve months, the fundamental market environment for German

equities has deteriorated even further, which is why we are more convinced

than ever that it can be worthwhile to look across the border. One trend

cannot be overlooked: the capital market no longer seems to be an attractive

option for German companies. On the contrary, the easy option of delisting

has led to a decline in the number of listed companies in recent years. By

contrast, a look at the Milan stock exchange and, thus, the Italian capital

market shows a completely opposite development. While a total of 18

companies were listed on the Milan stock exchange in 2023, only three IPOs

took place in Germany.

The greater willingness of Italian companies to go public is likely due,

among other things, to structural advantages. These include, for example,

multiple voting rights, which enable better control of the founders and good

takeover protection. For medium-sized companies in particular, this is a

good argument in favour of a capital market orientation. In addition,

issuers can benefit from tax advantages when going public. The high value

placed on equities can also be seen from the planned investment initiative

Fondo Nazionale Strategico. A total of EUR 1.0 billion is to be invested in a

targeted manner in medium-sized and smaller Italian companies under a new

fund of funds proposed by the state investment bank Cassa Depositi e

Prestiti (CDP). Even though the fund is aimed at institutional investors and

qualified private investors, it is expected that the increased market

liquidity and the generally higher demand for 'second-tier' stocks could

prove to be a price driver for these stocks.

Which is why, on the following pages, we would like to present you, dear

investor, with the GBC-Best of Italy 2024 selection. A series of promising

companies from a variety of sectors with attractive valuations that, in our

view, could be an attractive addition to a portfolio.

B&C Speakers S.p.A. (ISIN: IT0001268561)

Banca Ifis Group (ISIN: IT0003188064)

Cembre S.p.A. (ISIN: IT0001128047)

Energy S.p.A (ISIN: IT0005500712)

Franchetti S.p.A. (ISIN: IT0005508574)

IDNNT SA (ISIN: CH1118852594)

Lindbergh S.p.A. (ISIN: IT0005469272)

Redfish S.p.A. (ISIN: IT0005549354)

Reply S.p.A. (ISIN: IT0005282865)

Sanlorenzo S.p.A. (ISIN: IT0003549422)

Solid World Group S.p.A. (ISIN: IT0005497893)

Somec S.p.A. (ISIN: IT0005329815)

Zignago Vetro S.p.A. (ISIN: IT0004171440)

We wish you an exciting read and successful investments,

Cosmin Filker

Deputy Chief Analyst

You can download the research here: http://www.more-ir.de/d/31283.pdf

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

++++++++++++++++

Disclosure of potential conflicts of interest in accordance with Section 85

WpHG and Art. 20 MAR The following potential conflict of interest exists at

the company analysed above: (see individual studies); a catalogue of

potential conflicts of interest can be found at:

https://www.gbc-ag.de/de/Offenlegung

+++++++++++++++

Editorial deadline: 04.11.2024

Date and time of completion of the report: 11.11.2024 (3:09 pm)

Date and time of the first disclosure of the research report: 12.11.2024

(11:00 am)

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