Citizens reiterates IREN stock rating on platform scaling to AI

Citizens has maintained its Market Outperform rating and $80.00 price target on IREN Ltd. (NASDAQ: IREN) shares, following the company's transition from bitcoin mining to AI infrastructure deployments. This represents approximately 117% upside potential from the current stock price of $36.82, based on InvestingPro analysis estimating the stock's fair value at $39.96.

Analyst Greg Miller attributed the revised estimates to platform scaling, increased AI Cloud contribution, and higher investment levels. Citizens anticipates the winding down of bitcoin mining operations by the end of 2026, with capacity being redirected toward contracted AI workloads. Despite reporting negative levered free cash flow of $2.23 billion over the past year, analysts foresee a return to profitability with expected earnings of $0.44 per share in fiscal year 2027, compared to the current loss of $2.22 per share.

IREN Ltd. disclosed its fourth-quarter fiscal 2026 results, showing revenue of $137.2 million, which was below Wall Street's forecast of $157.14 million but surpassed their internal estimate of $100 million. The company's AI Cloud Services revenue surged to $70.5 million from $33.6 million in the prior quarter, even as it incurred a net loss of $684 million, primarily due to non-cash impairments from exiting bitcoin mining.

Cantor Fitzgerald maintained an Overweight rating with a $99 target price, citing the company's fully booked 2026 capacity and ongoing talks for 2027 and 2028 capacity expansion. Compass Point downgraded its price target to $85 from $105, expressing skepticism about the timing of the 2027 capacity ramp. H.C. Wainwright retained a Buy rating with a $90 price target, emphasizing the growth trajectory in AI services.

Citizens' reiteration of its Market Outperform rating underscores the company's strategic shift towards AI and cloud services amidst a challenging financial environment.