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On Thursday, JPMorgan analyst Reginald Smith updated the firm’s stance on IREN Ltd. (NASDAQ: IREN), shifting the rating from Neutral to Overweight, while reducing the price target to $12.00 from the previous $15.00. Smith highlighted IREN’s status as a prominent operator in bitcoin mining production, noting its efficient fleet and advantageous power contracts. According to InvestingPro analysis, IREN’s current market capitalization stands at $1.54 billion, with the stock currently trading near its Fair Value.
IREN Ltd., which specializes in constructing, owning, and operating data centers and electrical infrastructure, is recognized for its use of renewable energy in bitcoin mining and high power computing. The company’s recent foray into Cloud Services with over 1,800 NVIDIA (NASDAQ:NVDA) GPUs has also been acknowledged, alongside the anticipation of a 1.4 gigawatt site expected to be operational in April 2026. Financial data from InvestingPro shows impressive revenue growth of 133% in the last twelve months, with notably high gross profit margins of 90%.
The adjustment in stock rating comes after IREN’s shares experienced a significant year-to-date decline, approximately 30%, which Smith suggests is disproportionate when compared to the 11% drop in bitcoin prices. The analyst expressed optimism about IREN’s imminent hashrate expansion and high-performance computing (HPC) roadmap. InvestingPro data reveals multiple promising indicators, including expected net income growth and sales expansion this year. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into IREN’s potential.
JPMorgan’s analysis indicates a belief that the market has undervalued IREN’s stock, and Smith’s commentary underscores the firm’s confidence in IREN’s business model and growth prospects. The upgrade to Overweight reflects this positive outlook despite the downward adjustment in the price target, which suggests a more conservative valuation amidst the current market conditions.
Investors will likely monitor IREN’s progress closely, especially with the upcoming launch of its large-scale site, as it continues to navigate the volatile landscape of cryptocurrency mining and cloud computing services.
In other recent news, IREN Limited reported a robust mining margin of 70% for its hardware in February 2025, generating $43.9 million in revenue from mining 3,459 Bitcoin. Despite a slight decrease in mining revenue compared to the previous month, this represents a significant year-over-year increase. Cantor Fitzgerald recently adjusted its rating on IREN’s stock from Overweight to Neutral, maintaining a price target of $23.00. The company plans to increase its operating hash rate to 50 EH/s over the next four months, with expectations of generating substantial annualized operating cash flows. IREN also continues to expand its infrastructure, with site works commenced at the 1.4GW Sweetwater 1 project and energization planned for April 2026. The company remains committed to increasing its data center capabilities, including the development of the AI Data Center ’Horizon 1’. IREN’s technical commentary highlights strong margins supported by low electricity costs and efficient operations. Additionally, IREN has restructured its energy contracts, achieving the lowest cost to mine a Bitcoin in the industry.
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