IREN Ltd. (IREN) PT Raised to $105 at Compass Point

Compass Point analyst Michael Donovan raised the price target on IREN Ltd. (NASDAQ: IREN) to $105.00 (from $50.00) while maintaining a Buy rating.

The analyst commented: 'Yesterday after the market close, IREN Limited reported F1Q26 revenue of $240.3M, up from $187.3M in F4Q25, with bitcoin mining at $232.9M and AI cloud at $7.3M (F4Q25: $180.3m/$7.0m). The quarter confirmed that IREN now has the three ingredients—power, partners, capital—to scale AI cloud rapidly. In addition to the Microsoft (MSFT) deal announced earlier this week, IREN confirmed its three other customers: Together.ai, FluidStack, and Fireworks AI. The question from here is not demand but execution cadence (power, GPUs, liquid cooling) and how quickly AI cloud overtakes bitcoin as the primary earnings engine. At Childress (TX), IREN is accelerating Horizon 1–4 (200MW IT load) to accommodate Microsoft’s GB300 NVL72 deliveries through calendar 2026. Each horizon phase is engineered for roughly 19k GB300 GPUs (76k GPUs across four phases), with Tier-3-equivalent concurrent maintainability, 100MW “superclusters” for high-end training, and 130–200kW per rack densities to future-proof for the next GPU cycle. It is our understanding that interest is well above the initial 200MW from multiple counterparties. As long as customer demand remains robust, and we believe it should, GPU-as-a-Service offers higher, faster-payback equity returns (benefiting from prepayments and leverage on contracted cash flows) versus profiles in typical long-dated colo deals that rely on recontracting to earn back equity. The operating model remains bare-metal first as large AI customers prefer to run their own orchestration; software layers can be added opportunistically, but they’re not essential to win demand at scale. Management on the call made it clear that they are considering both GPU-as-a-Service and colo opportunities for Sweetwater. Given IREN’s access to deliver substantial power, one of the largest hyperscalers vouching for its expertise in delivering datacenters, and execution track record, we maintain our Buy rating and increase our price target to $105."

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