Raspberry Pi Holdings PLC

Raspberry Pi Holdings has seen its fair value estimate trimmed from £8.92 to £8.33, reflecting analysts' recalibration amid execution risks and capital needs. The revision comes as the stock trades in the £6.50 to £6.70 range, with Deutsche Bank setting a price target of 650 GBp and Berenberg initiating with a Hold and 670 GBp target, both in 2026. Analysts have adjusted revenue growth down from 34.25% to 33.36%, while net profit margin nudged up to 3.97% and the forward P/E lowered to 92.4x. Concerns include a fragmented customer base, high memory prices, and capital expenditure for semiconductor buildout, which could pressure margins and free cash flow. The company's expansion into industrial and embedded OEM customers and a shift toward software and proprietary silicon are seen as growth drivers, but risks like elevated inventories and reliance on lower-margin hardware remain.