Good morning, dear ones,
There has been a lot of positive news flow in the last few days, which I naturally don't want to withhold from you.
Since you have to start somewhere, let's start with $IREN (-8.33%) .😉
H.C. Wainwright has bought the shares of IREN Ltd. (NASDAQ:IREN) from "Neutral" to "Buy" and set a price target of 80.00 US dollars. The reason given is the company's strong positioning in the AI infrastructure sector. This target implies considerable upside potential compared to the current share price of USD 50.43.
The analyst firm assumes that AI infrastructure will remain a key investment theme in 2026. This will be driven by hyperscalers' investment budgets, growing demand for access to large power capacities and positive investor sentiment. This is in line with IREN's impressive revenue growth of 235% over the last twelve months.
H.C. Wainwright particularly highlighted IREN's five-year, USD 9.7 billion AI cloud contract with Microsoft. This is expected to be fully monetized by the end of 2026 and generate annual recurring revenues of USD 1.94 billion once the entire 200 MW of critical IT power has been deployed at the Childress site. The company also has a solid financial position with a current ratio of 5.52, which indicates that cash and cash equivalents significantly exceed current liabilities.
The analyst firm also referred to IREN's development pipeline, which includes additional capacity of over 2 GW and is expected to be fully operational by 2027. This offers considerable growth potential for the company's AI cloud business. With analysts forecasting revenue growth of 117% for the 2026 financial year, IREN's expansion plans appear well positioned to drive future business development.
IREN shares have corrected by around 35% since their all-time highs in early November 2025, which H.C. Wainwright sees as an attractive entry point. At the same time, it points out that the company recently raised USD 2.3 billion via convertible bonds to finance the expansion of its AI data centers. Despite the recent setback, IREN achieved a remarkable return of 381% last year.
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