Broker tips: Raspberry Pi, Tesco, Informa, Ocado

12th Aug 2026 14:30

(Sharecast News) - Analysts at Berenberg initiated coverage of Raspberry Pi with a 'hold' recommendation and 670p target price on Wednesday, saying the group's long‑term growth potential was clear but balanced by structural risks, forecasting challenges and near‑term margin uncertainty.

Berenberg said Raspberry Pi had evolved from a low‑cost computing supplier for education and hobbyists into an international provider across industrial and embedded markets, supported by an expanding product set and broader go‑to‑market strategy. It highlighted multiple high‑growth end‑markets - including AI and IoT - where the company could deepen penetration and lift gross‑profit participation.

However, Berenberg cautioned that Raspberry Pi's fragmented customer base, limited disclosures and complex sales structure made forecasting difficult for investors and the company itself. Competition across the computing and embedded‑systems landscape, including the risk of customers developing in‑house alternatives at scale, also posed challenges to order growth and OEM penetration.

Berenberg noted that Raspberry Pi's recent push into semiconductors, describing the segment as a potentially meaningful future revenue driver given a large addressable market and favourable industry trends. However, with semiconductors currently contributing only around 1% of revenue and average selling prices near $0.50, Berenberg said significant volumes and substantial capex would be required to scale the business. Free cash flow remains negative and was expected to stay under pressure in the short term.

The German bank also flagged memory costs as a key uncertainty, noting that while Raspberry Pi had managed record‑high industry prices well so far, it said the depletion of low‑cost inventory and ongoing shortages could weigh on margins and test demand resilience.

Following the recent pullback in semiconductor‑related equities, Berenberg said Raspberry Pi now sat closer to fair value, with its reverse‑discounted cash flow implying the market was pricing in revenue growth of more than 20% a year over the medium to long term.

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Shore Capital downgraded Tesco on Wednesday to 'hold' from 'buy' and suggested investors pause for breath.

The broker, which cut its price target to 480p from 525p, said Tesco has done all that it could have asked from the business in recent years.

"An outstanding management team has executed retail delivery with excellent consistency and strong capital discipline has driven sustained cash generation, making for attractive total shareholder returns," it said.

"Such a backdrop has been rewarded with an equity rating that we deem to be fair (circa 15x). Whilst so, we see a UK grocery retail scene where summer 2026 volume is quite shallow, cost recovery is not easy, the competitive intensity is a little higher and Tesco is facing into the headwind of multi-year share gains."

As a result, ShoreCap said that while it remains comfortable with guidance, as H1 FY27F comes to an end, it feels it sensible to pause for breath.

Citi lifted its price target on Informa on Wednesday to 1,090p from 990p and reiterated its 'buy' rating as it said its positive view was underpinned by resilient growth in B2B live events, strong revenue visibility, and exposure to structural growth.

"The stock is positioned to outperform as investor attention shifts to the attractive FY27E growth profile, where consensus forecasts 15% adjusted EPS growth," the bank said. "Trading at 13.5x FY27E price-to-earnings, the valuation remains compelling."

Citi added that while Informa's Europe, Middle East and Africa portfolio was likely to see some disruption to the remaining events in FY26, the issue was likely to be transient and it was minded to look through it.

JPMorgan reiterated its 'overweight' rating on Ocado on Wednesday and lifted its price target on the stock to 290p from 245p as it continued to view the risk/reward scenario as "highly attractive".

The bank noted that Ocado shares remain volatile, down 7% year-to-date versus the FTSE 100 up 9%, given the stock's "asymmetric, event-driven profile".

JPM said share price movements continue to be driven by the binary nature of the investment case, which hinges on (1) incremental deal announcements across both customer fulfilment centres and SBA (store-based automation) solutions that validate the proposition and (2) delivery of positive underlying cash flow by year-end.

It also said recent news flow around the signing of a large, new CFC customer, alongside a more constructive tone from chief executive Tim Steiner on its recent investor call, reinforced the view that momentum was improving and that further deal wins were achievable.

"At current levels, we see the valuation as depressed: the share price does not, in our view, even reflect the value of contracts already signed and, on our estimates, implies further site closures rather than incremental openings," it said.

The bank also said it remains positive around Ocado's ability to outbid competitors when it comes to new deals.