Loading...
Back to narrative

RPI: Cloud Endpoint Shift Will Drive Stronger Outlook Despite Margin Pressure

Accelerated Hardware Obsolescence And Rising Costs Will Undercut Value

RPI logo
RPI
AnalystLowTarget
Not Invested
Published 28 Jul 2025

Update shared on 13 Dec 2025

Fair value Decreased 12%
n/a
n/a
AnalystLowTarget's Fair Value
n/a
Loading
1Y
-35.3%
7D
-5.0%

Narrative Update on Raspberry Pi Holdings

Analysts have modestly reduced their price target on Raspberry Pi Holdings from approximately £4.41 to £3.86, citing slightly lower expected profit margins and valuation multiples that more than offset a small uplift in forecast revenue growth.

What's in the News

  • Chief Financial Officer Richard Boult plans to step down in the second half of 2026 after seven years with Raspberry Pi Holdings, with a formal search underway to manage an orderly succession and support the next phase of growth (company announcement).
  • Raspberry Pi and NComputing formed a strategic collaboration to bring the new Raspberry Pi 500+ all in one keyboard computer to the enterprise market, positioning it as a secure, affordable endpoint for organizations adopting VDI, DaaS, and SaaS at scale (company announcement).
  • Raspberry Pi 500+, featuring a quad core 64 bit Arm processor, 16 GB RAM, Wi Fi, Bluetooth, Gigabit Ethernet, and a swappable 256 GB SSD in a compact keyboard form factor, is being promoted as a low cost, secure desktop replacement ahead of Windows 10 end of support in 2025 (product announcement).
  • NComputing's LEAF OS on Raspberry Pi 500+ enables workloads to run in the cloud rather than at the endpoint, offering a locked down, read only Linux environment with no local data storage, thereby reducing cyber risk and simplifying IT management for enterprises (product announcement).

Valuation Changes

  • Fair Value: reduced from approximately £4.41 to £3.86, a modest decrease that reflects more conservative assumptions.
  • Discount Rate: risen slightly from about 8.30 percent to 8.47 percent, implying a marginally higher required return and risk premium.
  • Revenue Growth: increased modestly from roughly 18.1 percent to 19.2 percent, indicating a slightly stronger top line outlook.
  • Net Profit Margin: edged down from around 7.66 percent to 7.36 percent, pointing to slightly weaker profitability expectations.
  • Future P/E: declined from about 44.3x to 40.6x, signaling a somewhat lower valuation multiple applied to forward earnings.

Have other thoughts on Raspberry Pi Holdings?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.