Resilient demand reflects direct-to-OEM success - Raising PT to 960p

研报英文原文证据摘录

Resilient demand reflects direct-to-OEM success - Raising PT to 960p

omers. We understand that there is good traction in a range of smart home applications. Exhibit 1 - DDR4 Spot Price Trends

Momentum is also strengthening from existing defence-related customers, with a number of 35

new opportunities emerging. The underlying improvement in industrial demand as reported by price

chip vendors is also a positive factor. We expect Raspberry Pi's engagements with these large spot 2520

customers to expand in 2027 and beyond, leading to our upgraded forecasts. 8GB 10 DDR4

Semiconductors and edge AI are longer-term drivers: In the longer term, we continue to 0

expect edge AI-related demand for boards, as well as the company's small but growing MCU

.

business, to become growth drivers. Raspberry Pi boards are a cost and power-optimised Source: Inspectrum, Bloomberg

way to run agentic AI applications, a segment that is expected to steadily expand amongst

enthusiasts and enterprise customers.

Raising forecasts and price target: Based on stronger pricing and our positive view of longer-

term demand, we have raised our revenue forecasts for 2026 and 2027 by 18% and 16%

respectively, with our adj. EBITDA forecasts for the two years increased by 26% and 13%.

Our board shipment forecasts are unchanged due to uncertainty on DRAM availability, with

the upside coming entirely from higher ASPs. Based on the stronger outlook, we raise our

PT from 420p to 960p. Our new PT is based on a DCF, with our longer-term growth and

margin assumptions unchanged. We also believe our board shipment assumptions could

prove conservative in an environment of rising engagements with major enterprises and the

company's strategic building of DRAM inventory.