Jefferies analyst Janardan Menon downgraded the rating on Raspberry PI Holdings plc (RPI – Research Report) to a Hold today, setting a price target of p770.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Janardan Menon has given his Hold rating due to a combination of factors that influence the current and future positioning of Raspberry PI Holdings plc. One significant aspect is the company’s potential to capitalize on the proliferation of edge AI, particularly through its Pi 5 and CM5 boards, which are well-suited for industrial applications requiring real-time, low-latency decisions. However, despite this promising outlook, the immediate visibility remains limited due to ongoing destocking issues, leading to a cautious approach in the near term.
Additionally, while Raspberry PI Holdings is expected to benefit significantly from edge AI and semiconductor sales over the next 3-5 years, the lack of immediate recovery visibility has led to a downgrade from Buy to Hold. Although the target price has been raised to 770p, reflecting long-term potential and management quality, the adjustments in revenue estimates for 2024 and 2025 indicate a transitional phase before anticipated sales acceleration in 2026. Consequently, these factors contribute to a Hold rating as the market awaits more clarity on the recovery timeline.
Menon covers the Technology sector, focusing on stocks such as Infineon Technologies AG, ams-OSRAM, and ARM Holdings PLC ADR. According to TipRanks, Menon has an average return of -2.4% and a 43.43% success rate on recommended stocks.