Goldman Sachs Starts IREN Ltd. (IREN) at Neutral

Goldman Sachs analyst Michael Ng initiates coverage on IREN Ltd. (NASDAQ: IREN) with a Neutral rating and a price target of $39.00.

The analyst comments "IREN is an AI cloud that is in hyper growth scaling from $501M revenue in F2025 to $3.8 bn in F2028E with a commensurate increase in EBITDA from $270 mn to $2.7 bn over the same time period. This growth is underpinned by IREN's November 2025 announcement of its 5-year $9.7 bn TCV ($1.9 bn ARR) deal with Microsoft for a data center in Childress, Texas that calls for $5.8 bn of GPU spending for 76k GB300 GPUs and $3 bn of data center capex. In addition, IREN is building out a 40k GPU fleet of B200/B300 in British Columbia (migrating from Bitcoin ASICs) that should contribute $1B to AI Cloud ARR. IREN's growth trajectory is unprecedented in our coverage universe, and we see the potential for AI cloud deal announcements given that IREN has an additional 2.5+GW of secured grid-connected power capacity. That said, we view valuation as relatively full at ~7X NTM+1Y EBITDA. Our 12-month target price of $39 reflects a blended valuation methodology that includes an 85% fundamental value at 7.5X NTM+1Y EBITDA and 15% M&A value."

For an analyst ratings summary and ratings history on IREN Ltd. click here. For more ratings news on IREN Ltd. click here.

Shares of IREN Ltd. closed at $33.78 yesterday.

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