JPMorgan Upgrades IREN to Overweight, Sees 48% Upside

IREN Ltd's (NASDAQ: IREN) stock price fell by as much as 4% to around $42 on Monday, despite JPMorgan analyst Richard Choe upgrading his rating from Underweight to Overweight and increasing his price target to $65. The new target represents a 41% increase from the previous $46 target and implies roughly 48% upside from current levels.

The upgrade reflects growing confidence in IREN's ability to convert its expanding data center footprint and Nvidia partnership into durable recurring revenue. Choe noted that the company has been signing additional customers throughout the year at increasingly higher prices, with neocloud contracts rising from $10 to $15 per watt to $15 to $20 per watt and higher.

IREN's 2026 annual recurring revenue guidance has been raised three times, from $3.4 billion in November to $4.0 billion. The company ended June with 40 megawatts of capacity and is likely to reach about 400 megawatts of operational capacity by the end of 2026.

Wall Street analyst Gregory Lewis maintained a Buy rating on IREN, describing it as one of the few vertically integrated AI service providers. He noted that the company has potential power capacity of more than 5 gigawatts and is a preferred provider of Nvidia GPUs.