Raspberry Pi (LON:RPI) Stock Price Up 19.6% - What's Next?

Key Points

• Raspberry Pi shares surged 19.6% to GBX 755 on exceptionally heavy trading volume after the company reported record first-half results.
• First-half revenue jumped 90% to $256.9 million, shipments reached 4.2 million units, and profit rose sharply on strong industrial demand and volume growth. Management also expects full-year EBITDA to exceed market expectations.
• Jefferies upgraded the stock to “buy” and raised its target to GBX 960, although the broader analyst consensus remains “hold” with an average target of GBX 760; investors should also watch for fading benefits from low memory costs and inventory availability.

Raspberry Pi Holdings (LON:RPI - Get Free Report) rose 19.6% on Thursday . The company traded as high as GBX 779 and last traded at GBX 755. Approximately 65,796,594 shares were traded during mid-day trading, an increase of 2,608% from the average session volume of 2,429,408 shares. The stock had previously closed at GBX 631.50.

Key Raspberry Pi News

Here are the key news stories impacting Raspberry Pi this week:

• Positive Sentiment: Record first-half performance: Revenue rose 90% to $256.9 million, with shipments reaching 4.2 million units. Profit also increased sharply, supported by strong volume growth and demand from industrial customers. Raspberry Pi H1 Revenue Rises 90% to $256.9 Million as Shipments Reach 4.2 Million Units UK's Raspberry Pi posts record first half on strong industrial demand
• Positive Sentiment: Raised outlook: Management expects full-year EBITDA to exceed current market expectations, giving investors greater confidence in earnings momentum and supporting the stock’s advance. Raspberry Pi H1 Profit Surges on Volume Growth
• Positive Sentiment: Broker upgrade: Jefferies raised its forecasts and issued a “buy” rating, reinforcing the bullish interpretation of the results and potentially attracting additional institutional interest. Raspberry Pi rises as Jefferies lifts forecasts with buy rating
• Neutral Sentiment: Inventory helped results: Strategic inventory availability supported the first-half revenue surge, suggesting the company was able to meet demand more effectively. Investors may watch whether this pace can continue through the rest of the year. Raspberry Pi posts record H1 as demand and strategic inventory drive surge
• Negative Sentiment: Potentially temporary profit benefit: Lower memory costs helped profits triple, but the related windfall is expected to fade, creating a risk that future margin growth will be less dramatic. Raspberry Pi Shares Surge as Profit Triples on Cheap Memory, but Windfall Fades

Wall Street Analyst Weigh In

RPI has been the topic of several research reports. Jefferies Financial Group increased their target price on Raspberry Pi from GBX 420 to GBX 960 and gave the stock a "buy" rating in a research note on Thursday, June 25th. Deutsche Bank Aktiengesellschaft upped their price objective on Raspberry Pi from GBX 550 to GBX 650 and gave the stock a "hold" rating in a research report on Tuesday, June 16th. Finally, Berenberg Bank reissued a "hold" rating and set a GBX 670 target price on shares of Raspberry Pi in a research note on Wednesday, August 12th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of GBX 760.

Raspberry Pi Price Performance

The business's 50 day moving average is GBX 624.47 and its 200 day moving average is GBX 639.58. The stock has a market cap of £1.46 billion, a price-to-earnings ratio of 68.64 and a beta of 0.45.

Raspberry Pi Company Profile

Our mission is to put high-performance, low-cost, general-purpose computing platforms in the hands of engineers and enthusiasts all over the world. Since 2012, we've been designing single-board and modular computers, built on the Arm architecture, and running the Linux operating system. Whether you're an educator looking to excite the next generation of computer scientists; an enthusiast searching for inspiration for your next project; or an OEM who needs a proven rock-solid foundation for your next generation of smart products, there's a Raspberry Pi computer for you. That's not all we do.

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