IREN stock falls over 12% after JP Morgan downgrade but raises price target

IREN stock today: Bitcoin miner and AI compute power provider IREN's stock fell more than 12% on Friday after a JP Morgan analyst downgraded the stock rating from 'Neutral' to 'Underweight'.

IREN stock tumbles after JP Morgan downgrade

JP Morgan analyst Reginald cut IREN stock's rating, citing downside risks for the stock after a rally that carried it up 100% over the last month and about 600% over the last six months, as per a Sherwood report.

He said, “We estimate shares are pricing in a >1 GW colocation deal, which would be a deal of record scale and capex (>$10 billion), which is possible over time, but for now, creates more downside risk in shares than upside potential,” as quoted by Sherwood.

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JP Morgan raises IREN price target but remains cautious

However, even though he downgraded the stock's rating, he raised IREN's stock price target from $16 to $24, which is 50% higher than his previous target but also 48% below where the shares closed on Thursday, as reported by Sherwood.

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IREN analysts’ ratings show divide on outlook

The firm's rating adjustment contrasts with previous actions by other analysts who have maintained a more optimistic outlook on IREN and recent history shows a variety of Buy ratings and increased price targets, as per a Gurufocus report.

• Bernstein SocGen Group raised its price target on IREN stock to $75 from $20, citing an 80% upside and maintaining a Buy rating on September 24.
• Arete Research initiated coverage on IREN with a 'Buy' rating and a price target of $78 on September 24.
• Roth Capital maintained a 'Buy' rating and raised the price target from $35 to $82, a 134.29% increase on September 23.
• Canaccord Genuity maintained a 'Buy' rating, lifting the price target from $37 to $42, up 13.51% on September 16.
• BTIG maintained a 'Buy' rating, raising the price target from $22 to $32, marking a 45.45% jump on September 9.
• Jones Trading downgraded IREN to 'Hold' from 'Buy' on September 2.

FAQs

Why did IREN stock fall today?
IREN shares dropped after JP Morgan downgraded its rating from Neutral to Underweight, as per the report.

Did JP Morgan also cut the price target?
No. JP Morgan actually raised the price target from $16 to $24.