Investment banking titan Goldman Sachs (GS) believes there are reasons to take a cautious approach to data center operator Iren Limited’s (IREN) shares despite the company’s “hypergrowth”. One of these reasons is the stock’s “relatively full” valuation.
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IREN stock has climbed by 244% since January, despite the volatility that followed its Q1 2026 earnings results. However, Mike Ng, a five-star analyst at Goldman Sachs, initiated coverage of IREN stock on Thursday with a Neutral (Hold) rating.
This comes with a price target of $39 per share, implying about 15% upside from the stock’s closing price on Wednesday. Ng noted that Iren is expected to continue to significantly expand its revenue from $501 million at the end of its 2025 fiscal year to an estimated $3.8 billion by the end of fiscal year 2028.
Why Goldman Sachs Urges Caution
This is also expected to fuel the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) jump from $270 million to $2.7 billion during the same period. The analyst emphasized that Iren’s growth rate is “unprecedented” in its coverage universe, thanks to the Sydney-based company’s five-year $9.7 billion deal with U.S. tech giant Microsoft (MSFT).
“…We see the potential for AI cloud deal announcements, given that Iren has an additional 2.5+GW of secured grid-connected power capacity,” Ng added. However, the Goldman Sachs analyst pointed out that Iren’s growth beyond the deal is more uncertain.
B. Riley Backs Iren on Brighter AI Outlook
Ng’s comment comes days after Iren received the backing of B. Riley analysts Nick Giles and Fedor Shabalin, who argued for buying the stock despite falling 47% from its one-year high seen on November 5. The shares also sank 21% in November.
The analysts contended that Iren’s recent share price swings largely stem from broader investor concerns about AI plays. Iren’s shares trade as a stand‑in for this theme.
Is IREN Stock a Good Buy?
Across Wall Street, Iren Limited’s shares remain a Moderate Buy based on analysts’ consensus. This breaks down to nine Buys, one Hold, and two Sells issued by 12 analysts over the past three months.
However, the average IREN price target of $84 implies about 149% growth potential from current trading levels.
See more IREN analyst ratings here.