The shares of the AI cloud provider IREN are receiving fresh tailwind from a new buy recommendation from the investment bank Jefferies.
• Jefferies rates IREN Limited a “Buy”
• The assessment is based on the company’s AI cloud strategy and integrated infrastructure model
• At the same time, IREN is pushing ahead with its expansion into Europe by taking over the Nostrum Group
The investment bank Jefferies has initiated coverage for IREN and assigned the stock a “buy” rating. The price target is seen at $79.00. According to Investing.com, the focus of the positive assessment is the company’s strategic focus on building AI cloud infrastructure.
IREN is a vertically integrated AI cloud provider that provides large-scale data centers and GPU clusters for AI training and inference. According to analysts, this structure gives the company a strong position in the growing market for AI computing power. For example, contracts with Microsoft and NVIDIA would enable the company to generate $3.1 billion in annual recurring revenue.
Other analysts rate the company positively
IREN has a moderate buy ranking on TipRanks. Seven buy recommendations are compared to three hold and one sell recommendation. The average 12-month price target of these eleven Wall Street analysts is $75.00.
For comparison: On Thursday, IREN shares closed on the NASDAQ at $59.96 (+3.18 percent).
European expansion through takeover of Nostrum
The company only announced on Monday that it was pushing ahead with its geographical expansion. IREN has completed the takeover of the Spanish Nostrum Group and thus entered the European market. The deal includes around 490 megawatts of secured grid-connected power capacity in Spain as well as an additional development pipeline. IREN also integrates a team of more than 50 employees from the areas of development, engineering and operations.
As IREN explains in the company announcement, Europe is one of the most important growth markets for AI infrastructure. The new capacities in Spain are intended to form the basis to meet the increasing demand for AI cloud services in the region.
What this means for investors
For investors, Jefferies’ Buy rating signals confidence in IREN’s AI strategy and business model as a specialized infrastructure player.
The European expansion provides a supplementary growth driver, but is still in the operational implementation phase. The decisive factor for further price development is likely to be whether IREN can translate its strategic positioning into concrete sales and capacity progress. Investors should therefore pay particular attention to the scaling of the AI cloud business and the integration of the new European infrastructure.
Thomas Zoller, Bettina Schneider, Claudia Stephan, editorial team finanzen.net
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