Raspberry Pi Share Reaction to Jefferies Target Revision
On 25 June 2026, Raspberry Pi Ltd (LON:RPI) shares jumped 5.9% after Jefferies raised its price target from 420p to 960p. The analyst house highlighted a strong first‑half‑2026 earnings outlook, projecting adjusted EBITDA of at least $38 million for the period, which is close to Jefferies’ earlier full‑year EBITDA forecast of $43.7 million.
The upgrade is driven by a more than 100% increase in average selling prices for certain Raspberry Pi boards, reflecting higher DRAM component costs and resulting in higher gross profit per board. Despite the steep price hikes, Jefferies noted that demand remains resilient, citing the company’s successful shift toward direct‑to‑OEM and board‑to‑board sales that secure larger volume orders from corporate customers.
Jefferies also identified growing traction in smart‑home applications, expanding defense‑related opportunities, and improving industrial demand. Based on the stronger pricing environment and a positive view of longer‑term demand, the firm raised its 2026 revenue forecast by 18% and its 2027 revenue forecast by 16%. Correspondingly, adjusted EBITDA forecasts were increased by 26% for 2026 and 13% for 2027.
Board shipment volumes were left unchanged because of uncertainty around DRAM availability; the upside to earnings is therefore expected to come entirely from higher average selling prices rather than increased unit shipments.
Key figures:
- Share price increase: 5.9%
- New price target: 960p (up from 420p)
- Adjusted EBITDA H1‑2026: ≥ $38 million
- Prior full‑year EBITDA forecast: $43.7 million
- Revenue forecast increase: +18% (2026), +16% (2027)
- EBITDA forecast increase: +26% (2026), +13% (2027)
- Average selling‑price rise: >100% for some boards
Strategic notes: The company continues to move away from a reseller‑centric model toward direct engagements with large corporations, aiming to capture higher‑volume orders across smart‑home, defence, and industrial segments.