Source: Sharecast
HSBC said Raspberry Pi has made solid progress since its IPO, showing both commercial and technology progress with its channel strategy, improving the supply chain position, traction with custom products and new product launches in 2024.
"The festive mood lifted Raspberry Pi shares last month as they outperformed not only the FTSE 250 but also all the global wider semiconductor names substantially," it said.
"We struggle to see catalysts that could drive the share price meaningfully higher in the near term," it said.
"While we like the long-term story for Raspberry Pi we think the Goldilocks scenario is asking too much."
The bank lifted its price target on the stock to 500p from 440p to reflect updated FX assumptions and a lower weighted average cost of capital. "But we believe there is too much baked into the current share price," it said.
HSBC said the new target price implies 23.5% downside.
At 1000 GMT, the shares were down 8.2% at 558p.