Citizens reiterated a Market Outperform rating and $80.00 price target on IREN Ltd. (NASDAQ:IREN) following the company’s increased revenue guidance. The target represents nearly 99% upside from the current stock price of $40.20, reflecting strong analyst confidence. The company has delivered a remarkable 122% return over the past year, though shares remain 48% below their 52-week high of $76.87.
IREN raised its calendar year 2026 year-end AI Cloud annual recurring revenue target to more than $4.0 billion from $3.7 billion previously. The increase follows the signing of new multi-year cloud services agreements representing $2.8 billion of total contract value.
Approximately 85% of the updated ARR target is now under contract. Recent agreements include customer prepayments covering roughly 45% of associated GPU capital expenditures, reducing IREN’s net funding requirements.
Citizens analyst Greg Miller stated the announcement provides further evidence that deployable AI compute capacity remains scarce. Customer prepayments covering nearly half of associated GPU capex suggest customers remain willing to commit meaningful capital to secure access to infrastructure.
The $80 price target implies approximately 5.5 times estimated fiscal year 2028 enterprise value to EBITDA. The increase in contracted ARR improves visibility into the company’s near-term growth trajectory, according to the firm. InvestingPro subscribers have access to 15 additional exclusive tips about IREN, including detailed analysis of the company’s valuation multiples and growth prospects.
In other recent news, IREN Limited announced an increase in its year-end AI Cloud annualized run-rate revenue target from $3.7 billion to over $4 billion. This revision follows the signing of new multi-year cloud services contracts with AI developers, amounting to $2.8 billion in total contract value. Approximately 85% of the revised revenue target is now under contract, with a customer base that includes Microsoft, NVIDIA, and several other AI firms. Additionally, Goldman Sachs reiterated a Neutral rating on IREN with a $50.00 price target, noting that the new contracts represent approximately $1 billion in additional contracted revenues.
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