Jefferies upgrades Raspberry Pi Holdings (RPI) amid strong H1 2026 trading momentum
Jefferies upgraded Raspberry Pi Holdings, driving shares up 8.8% to 796p on 25 June 2026. The UK-based company's stock has risen from its previous close of 732p, also benefiting from continued positive momentum following a strong first-half 2026 trading update.
The analyst firm increased its price target for RPI to 960p from 420p, asserting that the company's earnings power was "materially underestimated." This assessment follows Raspberry Pi's pre-announcement on 5 June 2026, indicating expected adjusted EBITDA of at least $38 million for the first half of 2026. This figure approaches Jefferies' previous full-year forecast of $43.7 million.
Raspberry Pi has reported robust demand for its boards, even amidst price increases. This demand is particularly notable from larger enterprises utilising high-volume applications, including those in the smart home and defense sectors.
Why Jefferies' revised earnings outlook propelled Raspberry Pi
Raspberry Pi Holdings designs and sells compact, affordable single-board computers. These versatile boards are used by a diverse customer base, but particularly by larger enterprises for high-volume, embedded applications in sectors like smart home technology and defence. The company generates its revenue primarily from the sale of these boards, which are integral components in a wide array of products and systems.
Today's significant move for Raspberry Pi shares stems from a dramatic re-evaluation of its earnings potential by analyst firm Jefferies. The core mechanic here is that Jefferies had "materially underestimated" the company's earning power. This became evident when Raspberry Pi pre-announced on 5 June 2026 that its adjusted EBITDA for the first half of 2026 would be at least $38 million. This figure is strikingly close to Jefferies' previous full-year forecast of $43.7 million, indicating that the company is on track to far exceed prior expectations, also benefiting from continued positive momentum and robust demand even amidst price increases.
This substantial upward revision in earnings outlook directly translated into a much higher valuation, with Jefferies increasing its price target for RPI from 420p to 960p. As a result, the stock is currently trading at 796p, an 8.8% increase from its previous close of 732p.
Think of it like a sports scout initially assessing a rookie player's potential, expecting them to contribute a modest number of points over an entire season. Then, halfway through the season, that player has already scored almost as many points as the scout predicted for the whole year. The scout quickly realises their initial assessment was far too low and needs to drastically upgrade their expectations for the player's future performance and value.
Raspberry Pi Holdings
Raspberry Pi Holdings plc (RPI) specialises in the design and development of single-board computers and compute modules for a global market. Its product portfolio encompasses a range of hardware, including microcontrollers, cameras, displays, and various peripherals, alongside semiconductor and custom solutions. Beyond hardware, RPI offers software such as Raspberry Pi Desktop for PC and Mac, the screen-sharing tool Raspberry Pi Connect, and its Imager and OS software products. The company also operates Raspberry Pi Press, publishing magazines and books, and a dedicated retail store. RPI serves diverse customer segments, including industrial Internet of Things applications, original equipment manufacturers, educators, and enthusiasts. Founded in 2012, its operations are headquartered in Cambridge, United Kingdom.