Raspberry Pi's Strategic Shift To Drive Further Growth -- Market Talk

Dow Jones06-25

0934 GMT - Raspberry Pi is strategically solidifying its position within the supply chain, HSBC analysts write in a research note. "The group is gradually turning itself into a fabless semiconductor company by designing its own semiconductor intellectual property." The strategic shifts in the distribution channel by selling directly to original equipment manufacturers could drive a greater per unit gross profit within the supply chain, they add. The U.K. maker of low-cost computers has a simple, yet effective strategy of growing its sales by increasing both unit sales and average selling price, the analysts say. Raspberry Pi deserves a premium reflecting the scarcity of listed semiconductor names in the U.K. and its strong brand franchise, HSBC adds, and initiates its coverage with a buy rating. Shares are up 2.2% at 398.50 pence. (najat.kantouar@wsj.com)

 

(END) Dow Jones Newswires

June 25, 2024 05:35 ET (09:35 GMT)

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