British DIY computing pioneer Raspberry Pi (LSE:RPI) shares are a ‘buy’ according Jefferies investment bank, with analyst Janardan Menon talking up the recently-listed share’s growth potential and ESG credentials.
Despite the ‘DIY’ label often attached to Raspberry Pi (LSE:RPI), Menon reckons more sophisticated industrial use will actually provide the real catalysts, along with greater penetration into the device manufacturing market segment.
“The company looks well-positioned to outgrow the fast-growing Industrial IoT market, with Edge AI acting as an additional driver,” Menon said in a note.
“Semiconductor and software expertise are key differentiators, alongside its strong global brand and reputation. Profitability is expected to gradually increase with higher direct-to-OEM sales.”
On the ESG front, Menon added: “Raspberry Pi's products help improve standards of education and the use of digital technologies worldwide in an affordable way.
“Its boards use 85% less power than a typical PC, while having a much smaller carbon footprint during production and shipment.”
In terms of valuation, the analyst sets a price target of 448p per share – which suggests some 17% upside from Raspberry Pi’s current price of around 384p.
Jefferies has a ‘buy’ rating for the shares, which joined the London market in June via an IPO that priced at 280p and valued the company at £541 million.