Over the past few stock market trading sessions, investors have become progressively more bullish on the future of crypto miner and data center company Iren (IREN 0.26%). At least some of this improving sentiment has to do with positive analyst takes; sure enough, on Monday, a pundit's monster price target increase helped lead another bull run on the shares.
When the dust cleared, Iren's stock had gained almost 10% in value, a rate that easily surpassed the S&P 500's (^GSPC 0.34%) 0.3% improvement.
Another bull gets more bullish
Before market open that day, Compass Point's Michael Donovan pulled the lever on that raise, and it was a doozy. He cranked his Iren fair-value assessment more than 100% higher, to $50 per share, from the preceding $23. At the risk of stating the obvious given such a bullish move, he maintained his buy recommendation.
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Similar to other analysts, Donovan's sunnier take on Iren's future is based on the business pivot it's currently undergoing, according to reports. While maintaining its foundational Bitcoin mining operations, management is assertively pushing into data center buildouts.
What's appealing about this is that such facilities have great potential, given the increased resource requirements of artificial intelligence (AI) technology, which represents quite the leap over existing tech.
Low supply means high potential
To Donovan, Iren's recent purchases of hardware to bolster its AI-supporting infrastructure are clear indications of its devotion to the pivot. He finds this particularly encouraging, as the general supply of high-density computing resources should be limited over the next few years.
