IREN stock increased approximately 6% in Monday's premarket trading, following a significant decline of 10.39% experienced last Thursday. The uptick follows reports that Anthropic is seeking bids for at least 1.4 gigawatts of data center capacity in Australia, which is valued between $12 billion and $15 billion. IREN has been identified as one of the shortlisted bidders for this project.
Details of the Tender
The confidential tender announced by Anthropic includes notable competitors such as CDC Data Centres, AirTrunk, NextDC, and Stack Infrastructure. Anthropic aims to have at least 1 gigawatt of operational capacity established by the end of 2027 and has indicated that it may distribute the contract among multiple providers.
Market Reaction and Analyst Assessment
Despite the stock's recent volatility, Wall Street analysts maintain a positive outlook on IREN. The consensus rating is a Buy, with the average price target set at $81.75, considerably higher than the recent trading price of around $41.05. Jefferies initiated coverage on June 18 with a Buy rating and a price target of $79, while Macquarie affirmed its Outperform rating with a $90 target on June 4. Additionally, B. Riley Securities has raised its price target to $96, also recommending a Buy.
IREN is expected to announce earnings on August 27. Market predictions foresee a loss of $0.38 per share with revenues of $165.16 million, compared to a loss of $0.66 per share and revenues of $187.30 million from the same quarter last year.
Governance Concerns Affecting Sentiment
However, not all news surrounding IREN is positive. The company's board approved an $800 million equity package for co-CEOs, along with a sponsorship deal with the Golden State Warriors, leading to investor criticism regarding capital allocation and potential stock dilution. Recent transactions also include a director selling 11,958 shares, which has contributed to a cautious sentiment in the market.
Despite these concerns, institutional interest remains strong, as evidenced by Pictet Asset Management increasing its stake by 349.3% during the first quarter, acquiring an additional 99,384 shares.
