Jefferies covers IREN for the first time, giving a buy rating and a target price of $79

On June 19th, Jefferies covered IREN for the first time and gave a buy rating, with a target price of $79, which has about 30% upside potential compared to the current stock price of $60.50. Jefferies believes that IREN has advantages in a power portfolio of approximately 6 gigawatts, its own data center, and GPU cloud business. IREN's self operated AI cloud infrastructure has a return on investment of approximately 21%, and with the support of the contract between Microsoft and Nvidia, IREN is expected to achieve approximately $3.1 billion in annual recurring revenue. IREN recently acquired Nostrum, adding approximately 490 MW of electricity to Europe, and plans to build an 800 MW data center in South Australia.