IREN slips after JPM gives the stock its only “sell” rating
Bitcoin miner and AI compute power provider IREN slumped in early trading after JPMorgan analyst Reggie Smith cut his rating on the stock to “underweight” from “neutral,” citing downside risks for the stock after a rally that carried it up 100% over the last month and some 600% over the last six months.
Smith is the lone member of the sell side with an “underweight” (equivalent to a “sell”) rating, per Bloomberg.
“We estimate shares are pricing in a >1 GW colocation deal, which would be a deal of record scale and capex (>$10 billion), which is possible over time, but for now, creates more downside risk in shares than upside potential,” he wrote, as quoted by Bloomberg.
He set a price target of $24, which is both 50% higher than his previous target but also 48% below where the shares closed on Thursday.
Smith is the lone member of the sell side with an “underweight” (equivalent to a “sell”) rating, per Bloomberg.
“We estimate shares are pricing in a >1 GW colocation deal, which would be a deal of record scale and capex (>$10 billion), which is possible over time, but for now, creates more downside risk in shares than upside potential,” he wrote, as quoted by Bloomberg.
He set a price target of $24, which is both 50% higher than his previous target but also 48% below where the shares closed on Thursday.