Raspberry Pi Holdings saw its shares rally intraday, rising 7.2% to trade at 784p with a session peak of 804.5p, after a substantial analyst upgrade from Jefferies built on the momentum from the company's recent H1 2026 trading update.
Jefferies raised its price target to 960p from 420p, more than doubling its prior valuation, citing the company's exceptional first-half results as evidence that Raspberry Pi's earnings capacity had been materially underestimated. That re-rating acted as a fresh catalyst, amplifying price gains that had already begun after the trading update was released earlier this month.
The H1 trading update reported strong trading in the first half of the year, with profitability materially ahead of the comparable period in FY 2025. Management indicated that unit shipments are expected to exceed 4 million for the half ending June 30, 2026. Jefferies pointed to continued growth in unit volumes, a favourable product mix and the drawdown of low-cost DRAM inventory accumulated through FY 2025 as contributors to the outperformance.
Even with DRAM-related price increases, the company noted that demand from OEMs and other customers remained robust. The notable first-half profitability is expected to push FY 2026 EBITDA significantly above current market expectations, which stood at a consensus of $42.0 million based on published analyst forecasts as of early June.
The Jefferies upgrade formalised what had been an emerging earnings-revision narrative into a concrete price-target change. That combination of a blowout H1 pre-announcement and a high-conviction sell-side upgrade with a dramatically higher target created a two-pronged driver for the stock's strong session performance.
Raspberry Pi is listed on the FTSE 250, and the movement in its shares comes as investor interest in AI-adjacent hardware names has re-emerged. The company said it has lifted its profit outlook as stronger demand for artificial intelligence applications helped boost sales, a theme that has continued to draw institutional attention.
While the stock remains below its 52-week high of 1,078p, the latest intraday move represents a meaningful re-rating as sell-side coverage adjusts to the company’s improving fundamentals. Market participants focused on the earnings upgrade cycle today, with Jefferies' revised target suggesting that consensus estimates across the street may still be revised higher.
At the same time, the company and market commentary acknowledged ongoing uncertainties. Macroeconomic uncertainty persists, and the pricing and availability of DRAM and non-volatile memory remain challenging factors for the broader supply chain. Those dynamics are relevant to Raspberry Pi's cost base and inventory management even as current demand trends appear favourable.
What this means
- Jefferies' dramatic increase in its price target crystallised a positive earnings revision and acted as an immediate trading catalyst.
- Strong H1 profitability, higher unit volumes and inventory drawdown have materially improved the company’s near-term earnings outlook versus FY 2025.
- Demand from OEMs and sales into AI applications are supporting revenue growth, but memory-market conditions remain a risk.