This article first appeared on GuruFocus.
Canaccord Genuity has raised its price target on Iris Energy (IREN, Financials) to $70 from $42 while keeping a Buy rating, following the company's new GPU services agreement with Microsoft.
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The analysts said the deal significantly boosts Iris Energy's long-term value, adding about $22 per share based on a discounted cash flow model with an 8% cost of capital. An additional $6 per share came from higher valuations of its Sweetwater 1 site, reflecting stronger market demand for AI data centers.
The Microsoft partnership marks a turning point for Iris Energy as it expands beyond Bitcoin mining into AI cloud computing. In its fiscal first quarter of 2026, the company reported $240.3 million in revenue, up from $187.3 million the prior quarter, driven by $232.9 million from Bitcoin operations and $7.3 million from AI services.
Despite recent share volatility tied to higher expenses, analysts remain upbeat. Compass Point also lifted its target to $105, citing growing AI exposure and rising institutional demand for GPU infrastructure.
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Canaccord Genuity Boosts Iris Energy Price Target to $70 After Microsoft GPU Deal
Published 4 hours ago
Nov 10, 2025 at 5:28 PM
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