IREN Limited (NASDAQ:IREN) stock carries a reiterated Buy rating and $80 price forecast from BTIG, according to a research note on Thursday.
IREN stock is trading lower on Friday after the company reported worse-than-expected fourth-quarter financial results.
New AI Contracts Support Growth Outlook
BTIG’s note follows IREN’s fiscal fourth-quarter 2026 earnings, in which adjusted EBITDA of approximately $19 million came in below the BTIG estimate of $35 million, while revenue of about $137 million exceeded the BTIG estimate of $132 million.
BTIG attributed part of the shortfall to a weaker Bitcoin (CRYPTO: BTC) price, noting that IREN is continuing to wind down its Bitcoin mining operations. The analysts highlighted a new multi-year agreement with a frontier AI lab, which adds to roughly $2.8 billion in previously announced AI cloud contracts.
This has pushed IREN’s 2026 annual recurring revenue (ARR) target to about $4 billion, up from approximately $1 billion currently generated.
Capacity Nearly Sold Out
BTIG noted that IREN is nearly sold out of its 2026 capacity, with management reporting progress on 2027 and 2028 capacity. The analysts expect additional multi-year contracts, spanning three to five years, to be signed at higher pricing levels.
Management guided fiscal 2027 capital expenditures to a range of $25 billion to $30 billion, which BTIG described as a meaningful increase from prior figures, intended to support the $4 billion ARR target.
Prepayments Funding Capacity Buildout
BTIG noted that IREN ended the quarter with approximately $5.9 billion in unrestricted cash and $1.7 billion in restricted cash, largely earmarked for Microsoft-related capacity deployments.
The company’s liquidity was supported by approximately $3.6 billion in financing tied to the Microsoft contract and $2.8 billion against contracts with non-investment-grade customers.
Management told BTIG that recent customer prepayments have funded about 50% of GPU-related capital expenditures, a trend the analysts expect to continue. BTIG also noted that IREN had not raised debt against its data center infrastructure, which the analysts said leaves additional financing options available.
Valuation
BTIG values IREN at approximately nine times its fiscal 2027 EBITDA estimate of $2.1 billion, with the $80 price forecast reflecting roughly 10 times its fiscal 2028 EBITDA estimate of $3.8 billion, which remains under review.
IREN Stock Price Activity: Iren shares were down 13.71% at $34.98 at the time of publication on Friday, according to Benzinga Pro data.
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