IREN Ltd. (IREN) PT Raised to $56 at H.C. Wainwright

H.C. Wainwright analyst Mike Colonnese raised the price target on IREN Ltd. (NASDAQ: IREN) to $56.00 (from $45.00) while maintaining a Sell rating.

The analyst commented: "We are reiterating our non-consensus Sell rating coming out of IREN's F1Q26 results from last night (11/6) when the company reported underwhelming earnings and raised what we had already viewed as lofty AI Cloud revenue guidance for C2026. Despite inking a $9.7B AI Cloud deal with Microsoft (MSFT; not rated) earlier this week (see our note here), shares are currently trading ~5% below where they did at the time of our seemingly ill-timed double downgrade to Sell last week (see here). While the Microsoft deal is undoubtedly transformational for IREN, and boosts the company's credibility as a serious GPU service provider, we continue to view execution and financing risks as quite high at this juncture. Management is now guiding to $3.4B of annual run-rate revenues for the AI Cloud business exiting 2026 (up from ~$2.5B previously) from the deployment of 140,000 GPUs, compared to less than $30M in annualized revenues for F1Q26 (September quarter) on fewer than 1,900 deployed GPUs. As such, we see elevated logistical risks given IREN will need to deliver 460 MW of gross data center infrastructure and deploy over 138,000 additional GPUs over the next year. Further, we estimate IREN will now need to raise over $8B over the next twelve months to fund its ambitious growth targets for 2026, when excluding $1.8B of cash on hand (as of 10/31) and $1.94B of Microsoft prepayments, a dynamic that poses significant financing and dilution risks for investors, as we see it. With all that said, it is plausible that the broader AI frenzy could drive additional multiple expansion over the near-term, while the Microsoft deal is not fully baked into IREN's valuation, assuming the company successfully executes against its 2026 targets. Reiterate Sell rating while raising PT to $56 from $45."

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