Original-Research: Reply S.p.A. (von GBC AG): BUY

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

Company Name:	Reply S.p.A.
ISIN:	IT0005282865
Reason for the research:	GBC Italian Champions 2026
Recommendation:	BUY
Target price:	185.00 EUR
Target price on sight of:	31.12.2027
Last rating change:
Analyst:	Cosmin Filker, Matthias Greiffenberger, Marcel Goldmann

Dear Investors,

Once again this year, our 'GBC Italian Champions' study focuses on selected Italian listed companies that, in our view, offer particularly attractive business models, promising growth prospects and corresponding share price upside potential. This year's selection comprises twelve companies from a wide range of industries, covering a broad spectrum of company sizes and business models. Ten companies were already included in last year's selection. With Avio S.p.A. and Otofarma S.p.A., we are adding two new investment opportunities to our 'GBC Italian Champions' selection.

The performance of our selection from last year has also shown that it can be worthwhile to look beyond national borders. The twelve “GBC Italian Champions 2025” achieved an average price performance of 21.7% between 6 November 2025 and 30 October 2026. The selection thus outperformed the Italian market as a whole by a significant margin, as measured by the ITA STAR, which rose by 3.7% over the same period. Our selection from last year also significantly outperformed the German share indices. Over the same period, the DAX rose by 6.0%, the MDAX by 3.1% and the SDAX by 11.3%. In our view, this performance underscores the opportunities that a fundamental and selective stock-picking approach can offer, particularly outside the major European blue chips.

The Italian capital market also continues to offer attractive opportunities. Although the challenging macroeconomic environment and heightened market volatility have recently narrowed the window for initial public offerings in Italy, the Italian primary market continues to demonstrate significantly higher activity than its German counterpart over the longer term. Between 2021 and 2025, approximately 150 new listings were recorded in Italy, compared with just 29 IPOs in Germany. Euronext Growth Milan, in particular, remains an important gateway to the capital markets for small and medium-sized enterprises.

At the same time, Italy continues to improve the framework conditions for listed companies and investors. In addition to tax incentives for IPOs and relatively flexible regulations governing multiple voting rights, the 'Fondo Nazionale Strategico Indiretto' is gaining increasing importance. The initiative, which has been expanded to €750 million, aims to channel additional institutional capital into Italian small- and mid-cap companies. Furthermore, in 2026, Consob approved regulatory simplification measures designed to reduce administrative burdens and facilitate access to the capital markets.

Against this backdrop, we present our twelve 'GBC Italian Champions 2026' on the following pages. Our selection ranges from established market leaders and highly profitable niche players to high-growth companies that have positioned themselves in attractive markets with promising long-term prospects.

The 'GBC Italian Champions Study 2026' contains assessments of the following companies:

Avio S.p.A. (ISIN: IT0005119810)
Casta Diva Group S.p.A. (ISIN: IT0005003782)
Cembre S.p.A. (ISIN: IT0001128047)
Fine Foods & Pharmaceuticals N.T.M. S.p.A. (ISIN: IT0005215329)
Franchetti S.p.A. (ISIN: IT0005508574)
Lindbergh S.p.A. (ISIN: IT0005469272)
Lottomatica Group S.p.A. (ISIN: IT0005541336)
Otofarma S.p.A. (ISIN: IT0005663361)
Reply S.p.A. (ISIN: IT0005282865)
Sanlorenzo S.p.A. (ISIN: IT0003549422)
Siav S.p.A. (ISIN: IT0005504128)
Somec S.p.A. (ISIN: IT0005329815)

We hope you enjoy reading this study and wish you every success with your investments.

Cosmin Filker
Deputy Chief Analyst

You can download the research here: 20261109_Italian_Champions_engl

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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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
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Editorial deadline: 03/11/2026
Date and time of completion of the study: 09/11/2026 (10:09 a.m.)
Date and time of first dissemination of the study: 09/11/2026 (1:00 p.m.)