Shares of IREN NASDAQ:IREN climbed more than 13% on Monday after Freedom Broker raised its rating on the artificial intelligence cloud infrastructure company to Buy from Hold, arguing that the recent share-price decline created a more attractive entry point.
IREN NASDAQ:IREN had dropped roughly 28% during the previous five trading sessions after concerns tied to Meta Platforms NASDAQ:META expanding sales of excess computing capacity and the company's award of 9.1 million restricted stock units to each of its co-chief executives weighed on investor sentiment. Monday's analyst upgrade added fresh support to the stock.
Freedom Broker analyst Paul Meeks maintained a $58 price target on IREN NASDAQ:IREN, implying about 49% upside from recent levels. While Meeks reduced near-term revenue estimates, he said IREN NASDAQ:IREN could still generate most of its expected growth later in the fiscal year as capacity comes online.
The analyst also kept projections that IREN NASDAQ:IREN will have about 150,000 graphics processing units, or GPUs used for AI computing workloads, installed by year-end. Meeks expects IREN NASDAQ:IREN to increase revenue from about $717 million this fiscal year to $3.8 billion in fiscal 2027, with revenue potentially reaching $8.5 billion in fiscal 2028.