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Investing.com - Macquarie has raised its price target on Iris Energy (NASDAQ:IREN) to $33.00 from $20.00 while maintaining an Outperform rating on the stock. The company, currently valued at $5.5 billion, has seen its shares surge over 170% in the past year, significantly outperforming the market.
The research firm cited Iris Energy’s fourth-quarter earnings beat, driven by bitcoin price performance and the company’s expanding artificial intelligence operations.
Macquarie noted that while bitcoin mining remains paused at 50 EH/s, Iris Energy continues to develop sites that could significantly expand its high-performance computing (HPC) and AI capabilities.
The analyst highlighted that Iris Energy is making "meaningful GPU procurement/financing strides" and is establishing itself as a true data center operator, with its NVIDIA Preferred Partner status supporting HPC/AI business growth.
Macquarie’s price target increase reflects what it describes as a "sector re-rating and HPC business growth via cloud, net of requisite debt/capex," using a combination of EV/EH and EV/sales sum-of-the-parts valuation for bitcoin mining and HPC, along with EV/EBITDA methodology based on peer group comparisons.
In other recent news, IREN Ltd reported record annual revenue for Q4 2025, surpassing revenue forecasts and showcasing impressive growth in its operations. The company achieved fourth-quarter Bitcoin mining revenue of $180.3 million, alongside an adjusted EBITDA of $121.9 million, meeting estimates from B.Riley. Additionally, IREN’s AI Cloud revenue doubled to $7.0 million, exceeding B.Riley’s forecast of $5.6 million. Cantor Fitzgerald has responded to IREN’s expanding role in the AI data center market by raising its price target to $41 from $27, while maintaining an Overweight rating. The firm noted robust demand for GPU compute services as a key factor in its assessment. Meanwhile, H.C. Wainwright increased its price target for IREN to $36 from $21, reflecting a revised fiscal 2026 revenue estimate of $1.27 billion. B.Riley also adjusted its price target upward to $29 from $22, citing growth in the AI Cloud segment. These developments highlight IREN’s strong financial performance and growing market presence.
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