on Monday, iris energy Ltd. (NASDAQ: ) significantly raised its price target to $18.00 from the previous price of $9.50, while maintaining a Buy rating on the stock. The adjustment was made after B.Riley considered the company’s potential high-performance computing (HPC) economics. The company used a sum-of-the-parts approach to evaluate Iris Energy’s available power capacity for HPC applications.
Analysts at B.Riley noted that while Iris Energy has yet to provide specific guidance on the timing or model of its HPC strategy, the market is expected to continue to increase the valuation of the company’s stock based on this emerging opportunity. The company said expectations for new customer contract announcements and final decisions on construction could be the next major catalysts for the stock’s performance.
Iris Energy, which currently has a buy rating, has not made any official comment on the timetable or approach to rolling out its HPC plans. As analysts’ comments indicate, the company’s strategy and future plans in this area remain a topic of interest to investors and the market.
The raised price target reflects a positive outlook for Iris Energy stock, as the potential integration of HPC could boost the company’s valuation. Investors are advised to pay attention to the company’s upcoming announcements, which may provide more details on customer engagement and project development.
The market will be closely watching any news from Iris Energy that could impact the company’s trajectory, especially given the price target increase and HPC’s potential to contribute to the company’s growth.
In other recent news, Iris Energy Ltd. has made significant progress in its operations. Cantor Fitzgerald assigned the company an Overweight rating and a new price target of $23.00, indicating that the company is in a promising growth stage. Iris Energy’s computing power capacity is expected to surge from the current 9.4 EH/s to over 40 EH/s by mid-2025, and it has secured a substantial 2,160 megawatts of power capacity, laying the foundation for its potential further growth.
The company’s mining capacity is expected to reach an impressive 30 exahash by the end of the year, exceeding the initial forecast of 20 exahash. This growth was driven by a deal with Bitmain, a leading producer of mining hardware, and the construction of new data centers. Iris Energy’s AI cloud services division is also growing, with annual hardware profits expected to be approximately US$14-17 million.
The company reported operating cash flow of $48 million for the quarter and net income before tax of $12 million. Analysts from Morgan Stanley and Goldman Sachs said it could increase to 40 exahash in the first half of 2025, further solidifying Iris Energy’s position in the industry.
Investment Professional Insights
Investors may find more context in InvestingPro’s latest indicators and insights after B.Riley made a positive assessment and raised the price target on Iris Energy Ltd. (NASDAQ: IREN ). In the past 12 months as of the third quarter of 2024, Iris Energy had a market capitalization of $1.95 billion, a gross profit margin of 88.16%, and a strong financial position. In addition, the company’s revenue grew by 379.82% in the third quarter of 2024, demonstrating its dynamic expansion in the market.
InvestingPro Tips highlights the company’s strong cash position, as Iris Energy holds more cash than debt, an encouraging sign for investors looking for financial stability. In addition, analysts are forecasting sales growth this year, further supporting the company’s potential for continued expansion. With these insights, the company’s pursuit of high-performance computers seems more promising.
For those considering investing in Iris Energy, here are 16 additional InvestingPro Tips that provide a deeper understanding of the company’s performance and prospects. To explore these tips and enhance your investing strategy, visit https://www.investing.com/pro/IREN and consider using the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.
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