Goldman cuts IREN price target to $30 from $50 despite EBITDA beat. Here’s why
Goldman Sachs cut its 12-month price target on IREN (NASDAQ: IREN) to $30 from $50, citing broader AI multiple compression and execution risks. IREN reported Q1 revenue of $228M, down 5%, and adjusted EBITDA of $66M, down 28%. AI Cloud Services revenue beat estimates, while Bitcoin mining revenue fell 88%. Goldman raised F2027 and F2028 EBITDA estimates but lowered F2029. IREN adjusted its capex plans and expects to cover the funding gap with various initiatives.
How this was made
The 30-second read
Why it matters
The downgrade could trigger short‑selling and pull‑back from AI‑infrastructure exposure.
Market read
Analyst target cut is a fresh, material event that may move IREN's share price and influence related AI‑hardware stocks.
What to watch
Potential upside from the expanded frontier AI lab contract and higher‑margin EBITDA forecasts for 2027‑2028.
Background
Goldman reduced IREN's valuation multiples due to compression in AI‑related multiples and execution risks, while raising near‑term EBITDA forecasts.
Ticker impact
Goldman Sachs cut its 12‑month price target on IREN to $30 from $50 and kept a Neutral rating, citing lower AI‑related multiples and execution risks.
likely downward pressure as the market prices in the reduced target and execution concerns.
The analyst downgrade is a fresh, material change with a specific price target, providing a clear actionable signal for traders.
Market effects
AI‑infrastructure and data‑center stocks may face broader valuation pressure.
U.S. tech sector sentiment could dip in the short term.
Limited to investors tracking AI‑related hardware and cloud providers.
Counterpoint
The target cut may be overly pessimistic if IREN's new GPU financing and prepaid capex improve cash flow.
Key entities
- analystGoldman Sachs
Provided the price‑target cut and valuation rationale.
- companyIREN
AI‑infrastructure provider whose stock is being downgraded.
