B. Riley’s $64 Target Says IREN’s Selloff Went Too Far
B. Riley cut IREN's price target to $64 from $91 but maintains a Buy rating, seeing 161% upside. IREN is down 68% from its high, citing weak Q4, neocloud borrowing concerns, and Microsoft's lower capital spending. Analysts expect revenue growth but larger losses. The stock's valuation depends on IREN's ability to fund a $25B-$30B build without issuing many shares, with the next test on Nov. 5.
How this was made
The 30-second read
Why it matters
The price‑target reduction reflects concerns over high capex and weaker demand, but the company still projects strong revenue growth in FY2027‑2028.
Market read
The new target signals a bearish short‑term outlook for IREN, potentially influencing micro‑cap traders and AI‑cloud sector sentiment.
What to watch
Potential upside from the $1.94 B Microsoft contract and future revenue growth could mitigate the target cut.
Background
IREN shifted from Bitcoin mining to AI cloud services, leading to volatile earnings and capital‑expenditure expectations.
Ticker impact
B. Riley cut IREN's price target to $64 from $91, indicating the analyst believes the stock is oversold after a 68% decline.
likely pressure as investors digest the lower target and reduced upside expectations
Analyst downgrade with a substantial target reduction is a fresh catalyst that can trigger sell‑offs, especially after a steep price decline.
Market effects
The downgrade may weigh on other AI‑cloud and crypto‑related stocks as investors reassess sector risk.
Primarily U.S. market impact; no broader regional effect noted.
Limited to investors tracking IREN and similar micro‑cap AI/cloud players.
Counterpoint
Some traders may view the target cut as an overreaction and see a buying opportunity given the stock's steep decline.
Key entities
- analystB. Riley
Equity research firm that lowered IREN's price target.
- partnerMicrosoft
Contracted to provide roughly $1.94 B of annualized revenue to IREN.
