J.P. Morgan Securities upgraded IREN to "overweight"
IREN Ltd (NASDAQ: IREN) stock is climbing higher today after J.P. Morgan Securities upgraded the bitcoin mining name to "overweight" from "neutral." The firm believes IREN has been “overly punished” this year, creating an attractive entry point for investors. However, the analyst also cut its price target on IREN stock to $12 from $15.
In response, the shares were last seen 0.9% higher at $7.10 ahead of the open. The crypto mining sector has faced pressure in 2024, with bitcoin volatility and regulatory concerns weighing on sentiment, and IREN has already lost 28.3% year-to-date. On the charts, the stock is trading near its lowest levels since early September, though today's bounce could put it back above pressure at its 10-day moving average.
Short sellers have been piling on, with short interest up 8.1% in the last two reporting periods. The 22.25 million shares sold short account for 11.1% of IREN stock’s available float.
Options traders lean bearish, per IREN's Schaeffer's put/call open interest ratio (SOIR), which stands in the 80th percentile of annual readings. An unwinding of this pessimism could serve as a bullish catalyst.