IREN stock price target raised to $36 from $21 at H.C. Wainwright

Published 02/09/2025, 12:46
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Investing.com - H.C. Wainwright raised its price target on IREN Ltd. (NASDAQ:IREN) to $36.00 from $21.00 on Tuesday, while maintaining a Buy rating on the stock. The stock, currently trading near its 52-week high of $29.50, has delivered an impressive 235% return over the past year. According to InvestingPro analysis, IREN is currently trading above its Fair Value.

The price target increase follows IREN’s record quarterly and annual results for F4Q25 and F2025, which were reported on August 28. With revenue growth of 168% and a healthy gross profit margin of 68%, the company has shown strong operational execution. IREN shares surged approximately 16% on August 29, outperforming the Nasdaq which declined 1% that day.

While IREN announced the procurement of an additional 2,400 NVIDIA GPUs, bringing its total recent purchases to 9,000 units including B200s, B300s, and GB300s, InvestingPro data indicates the company is quickly burning through cash with negative free cash flow. The company has also secured NVIDIA Preferred Partner status, which should enhance its access to new GPUs and ability to attract more customers. Get access to 20+ additional ProTips and comprehensive financial metrics with InvestingPro.

Management expects to have its full fleet of 10,900 NVIDIA GPUs installed by the end of 2025, projecting these will generate $200-250 million in annualized revenues, representing upwards of 50% of total revenues generated in F2025.

H.C. Wainwright estimates IREN’s total revenues will grow by over 150% year-over-year in F2026, driven by its Bitcoin mining operations and rapidly scaling AI Cloud business.

In other recent news, IREN Ltd reported its fourth-quarter 2025 earnings, showcasing record annual revenue and strong net income, which surpassed expectations. The company achieved fourth-quarter Bitcoin mining revenue of $180.3 million and adjusted EBITDA of $121.9 million, aligning with B.Riley’s estimates. Additionally, IREN’s AI Cloud revenue saw significant growth, doubling to $7.0 million from $3.6 million in the previous quarter, exceeding B.Riley’s forecast.

In response to these financial achievements, several analyst firms have adjusted their price targets for IREN. Macquarie raised its price target to $33.00, citing the company’s earnings beat and expansion in AI operations. H.C. Wainwright increased its price target to $36.00, reflecting a revised revenue estimate of $1.27 billion for fiscal 2026. B.Riley also raised its target to $29.00, driven by the company’s AI Cloud growth. Cantor Fitzgerald set a new target of $41.00, highlighting IREN’s growing position in the AI data center market and robust demand for GPU compute services. These developments underscore IREN’s strong performance and strategic positioning in key growth areas.

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