H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating on Iris Energy (IREN – Research Report) today and set a price target of $10.00.
Mike Colonnese has given his Buy rating due to a combination of factors including Iris Energy’s ambitious growth targets and successful forays into new business areas. Specifically, Iris Energy is on a clear trajectory to significantly increase its operational hash rate to 10 EH/s by the first half of 2024, with a further goal to double that rate by the end of the year. The company’s management has a history of providing conservative guidance, which lends credibility to their expansion plans. Additionally, the funding for this growth is already in place, with all necessary mining equipment purchased and data center construction progressing ahead of schedule. Moreover, the company’s strategic entry into the AI cloud services market is expected to offer a high-margin and non-correlated revenue stream, further bolstering Iris Energy’s financial prospects.
The AI cloud service business, in particular, has shown promising early results, with Iris Energy quickly securing contracts and expanding its GPU fleet in response to strong demand. The financial implications of this new venture are significant, with potential gross profits that could contribute meaningfully to the company’s overall revenues. The initial success and favorable economics of the AI business, combined with Iris Energy’s solid performance in its core bitcoin mining operations, underpin Colonnese’s optimism about the company’s near-term growth. These factors, paired with the company’s above-average operational efficiency, contribute to the analyst’s recommendation to buy Iris Energy’s stock.
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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.
Read More on IREN:
- Iris Energy Reports Second Quarter and Half Year FY24 Results
- Unusually active option classes on open February 14th
- Iris Energy Triples AI Cloud Services Business to 816 NVIDIA H100 GPUs
- Iris Energy call volume above normal and directionally bullish
- Iris Energy signs GPU cloud service contract with AI company
