IREN stock closed at $24.90 on Friday, marking a 2% decline for the day and a staggering drop of 21% over the past week. Earlier this week, the stock hit a new 52-week low, trading at approximately $25.58, and has now plummeted 46% over the past year.
The recent selloff has been primarily driven by concerns surrounding high borrowing costs within the neocloud and broader tech sectors. Despite this downturn, optimism persists among various analysts on Wall Street.
According to InvestingPro data, IREN exhibits a beta of 4.27, indicating its volatility is over four times the market average. Additionally, its RSI reading suggests that the stock is currently oversold.
What Analysts Are Saying
JPMorgan analyst Richard Choe has recently upgraded IREN, raising his price target from $46 to $65, which suggests a potential upside of around 155%. Choe described IREN as a “formidable neocloud” company, highlighting that it is now securing substantially better deals for GPU and power capacity.
He also pointed out a notable shift in AI cloud contract pricing, which has increased from $10-$15 per watt to $15-$20 per watt or even higher. Additionally, IREN has inked a multiyear cloud services agreement with a prominent player in the field.
On the other hand, BTIG analyst Gregory Lewis reiterated a Buy rating with an $80 price target, emphasizing IREN’s substantial power capacity of 5 gigawatts. He noted that the company’s control over its supply chain sets it apart from competitors, allowing it to secure land, construct data centers, and acquire GPU capacity and hardware effectively.
Analysts with Caution
Not all analysts are as optimistic. Kevin Dede from Jones Trading has rated the stock a Hold, pointing to a mix of factors that he finds polarizing, including a broad customer base contrasted with a number of lower-quality customers.
Similarly, Alexander Haissl from Rothschild Redburn has opted for a Neutral rating with a price target of $40, suggesting that the market has already accounted for IREN’s risk and potential returns.
Overall, Wall Street classifies IREN as a Strong Buy, with a consensus of eight Buys and two Holds over the past three months. The average price target stands at $82.56, indicating a substantial potential upside of approximately 228% from its current trading position.
InvestingPro’s Fair Value analysis suggests that the stock is undervalued, and analysts forecast a profit for the company this year, with an expected earnings per share (EPS) of $0.40 for fiscal 2027.
IREN closed the trading day at $24.90 on October 23, down $0.61 for the day, with after-hours trading remaining stable at the same price.
