The shares of Iris Energy (IREN), a Sydney-based company that mines bitcoin primarily with renewable energy, has the potential to rise more than 100% in the next 12 months, JPMorgan analysts led by Reginald Smith wrote.
Iris Energy is “a cheap way to play the digital gold rush,” said JPMorgan’s analysts, citing a “deep discount” for its shares versus other crypto miners.“We think IREN is an attractive and efficient way to gain long exposure to bitcoin prices and sentiment and are initiating coverage with an overweight rating and $30 December 2022 price target,” the analysts wrote.The shares of Iris Energy closed at $14.40 on Dec. 10, implying about 108% upside based on JPMorgan’s price target.Meanwhile, another Wall Street investment firm, Compass Point Research, also initiated research on Iris Energy with a buy rating and 12-month price target of $22, implying more than 50% upside from Friday’s close.“We believe IREN is well positioned with a large order for 14.5 EH/s of Bitmain with below market pricing and a strategy of owning/operating data centers,” wrote Compass Point’s analyst Giuliano Bologna.Bologna also highlighted that Iris Energy has the “right pieces” to become one of the biggest bitcoin miners and that shares are currently trading at a discounted valuation.The shares of the Australian bitcoin miner have fallen about 42% since its trading debut on Nov. 17. Last week, the company said its monthly revenue fell 10% in November because of timing issues and an increase in network difficulty.Shares of Iris Energy were down about 3% in early trading on Monday after rising in pre-market trading.
Forex Trading can be risky, to cut the risk. Sign up to FX Delta for consistent results. The Best Forex trading signals for an average of 8% gains. Click here to sign up.
#Bitcoin #Miner #Iris #Energy #Upside #JPMorgan #Analyst