Macquarie Boosts Iris Energy (IREN) Price Target to $13.50, Highlights AI and Mining Growth Potential
Macquarie reaffirmed its Outperform rating on Iris Energy Ltd. (NASDAQ: NASDAQ:) and raised the stock's price target to $13.50 from $12.00. The adjustment reflects the firm's acknowledgment of Iris Energy's recent operational progress and its promising future in high-performance computing (HPC).
Despite falling slightly short of market expectations in the fourth quarter due to increased network difficulty, Iris Energy has managed to expand its mining capacity by approximately 4.5 EH/s. Macquarie's confidence in the company is strengthened by the upcoming deployment of additional miners and the potential growth of its AI-driven HPC business.
The firm's valuation model now considers Iris Energy's electric vehicle (EV) to hash rate (EH/s) metrics and HPC revenues, as well as the EV to EBITDA ratio. Macquarie praises Iris Energy's infrastructure expertise, asset versatility, and efficient operations, which have contributed to steady growth and positive outlook.
Cantor Fitzgerald adjusted Iris Energy's price target to $20.00 from $23.00, attributing the decrease to increased operational expenses related to rapid expansion at the company's Childress facility. However, Iris Energy's revenue and electricity costs were in line with analyst estimates, and management remains on track to achieve hash rate goals.
With an optimistic outlook from Macquarie and data from InvestingPro indicating financial stability and growth potential, investors may find Iris Energy an attractive investment opportunity. The company's strong gross profit margin and anticipated sales growth align with positive assessments of its future prospects. However, investors should be mindful of the stock's high price volatility and lack of profitability over recent periods.
Overall, Iris Energy's recent developments and promising outlook in AI and mining sectors make it a compelling investment option for those seeking growth opportunities in the evolving market landscape.