Mike Colonnese, an analyst from H.C. Wainwright, reiterated the Buy rating on Iris Energy (IREN – Research Report). The associated price target remains the same with $10.00.
Mike Colonnese has given his Buy rating due to a combination of factors that indicate strong performance and growth potential for Iris Energy. Notably, the company has exceeded its own expectations by accelerating its expansion and raising its year-end 2024 guidance from 20 EH/s to 30 EH/s. This is a significant achievement for a Bitcoin mining company, considering the complex logistics of scaling up large-scale mining operations. Colonnese highlights the company’s efficiency improvements and cost-effective production estimates as key strengths. Iris Energy’s strategy has led to early completion of its infrastructure projects and an optimistic outlook on its mining capacity, contributing to the Buy rating.
Further supporting the positive recommendation, Colonnese points to Iris Energy’s financial position, with sufficient cash on hand to fund its current operational targets and plans to finance further expansion through operating cash flow. Additionally, the analyst notes the stock is trading at a considerable discount compared to peers when considering market capitalization relative to deployed hash rate, suggesting the potential for valuation adjustments as the company continues to meet or exceed its growth targets. The future plans for Iris Energy, including the expected increase to 40 EH/s by the first half of 2025, signal a strong trajectory for growth, underpinning Colonnese’s confidence in the firm’s ability to execute its strategy and deliver value to investors.
In another report released on May 6, Canaccord Genuity also maintained a Buy rating on the stock with a $9.00 price target.
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Iris Energy (IREN) Company Description:
Iris Energy Ltd is a bitcoin mining company. It builds, owns, and operates data centers and electrical infrastructure for the mining of Bitcoin primarily powered by renewable energy. The company’s mining operations generate revenue by earning Bitcoin through a combination of block rewards and transaction fees from the operation of its specialized computers called Application-specific Integrated Circuits and exchanging these Bitcoin for currencies such as USD or CAD on a daily basis.
