IREN Shares Drop After JPMorgan Downgrade On Valuation Concerns

Shares of IREN Limited (NASDAQ:IREN) are trading lower Monday following a downgrade from JPMorgan, which lowered its rating on the stock from Overweight to Neutral.

What To Know: The move comes despite the bank raising its price target from $12 to $16, citing improved bitcoin mining economics and progress at the company's Childress site.

JPMorgan acknowledged IREN’s strong year-to-date performance, up approximately 80%, far outpacing both the 20% increase in bitcoin prices and the performance of peer miners as measured by the CoinShares WGMI Bitcoin Miner ETF. However, analysts noted that without further catalysts such as a major high-performance computing deal or a sharp rise in bitcoin prices, additional upside may be limited in the near term. While JPMorgan sees potential for IREN to secure future high-performance computing clients, the lack of a concrete deal and uncertainty around the timeline prompted the downgrade.

The downgrade reflects investor caution as shares have surged ahead of fundamental catalysts. JPMorgan continues to monitor the situation for positive developments, including the potential announcement of high-performance computing colocation agreements or further increases in bitcoin prices, which could support renewed upside. For now, the firm maintains a neutral stance as IREN's valuation catches up to its underlying business progress.

IREN Price Action: IREN Limited shares were down 5.98% at $16.66 at the time of writing, according to Benzinga Pro.

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