IREN (IREN) - Double Upgrade
IREN is a neocloud provider. It started as a Bitcoin miner and is now shifting into an AI infrastructure business. JP Morgan Chase (JPM) gave it a double upgrade to overweight from underweight, and raised the price target to $65 from $46. That implies more than 40% upside from Friday's close. Shares traded near $42.
JP Morgan sees IREN as a top-tier neocloud provider competing in the AI infrastructure market. Its AI cloud revenue grew 110% sequentially in the fiscal fourth quarter. It holds contracts and partnerships with Nvidia (NVDA) and Microsoft (MSFT), which strengthen its credibility and help it attract more customers. JP Morgan sees it as a competitive player with the data center power to become important in the AI buildout.
The bullish view did not lift the share price. Neocloud names are under pressure, including Nebius (NBIS) and CoreWeave (CRWV), amid questions about the AI arms race triggered by weekend-to-Monday comments from the heads of Anthropic and OpenAI. Tech stocks broadly had a tough day.
HPE (HPE) - Downgrade
Evercore ISI downgraded HPE to in-line from outperform, mainly on valuation after a big runup. Coming into the day, HPE shares were up more than 150%. The stock fell in pre-market trading, from both this note and the broader tech pressure.
Evercore believes most of the good news around HPE's AI and networking business is already priced in, leaving limited near-term upside. AI-related spending powered the rally, and HPE benefited from that spending. The Juniper opportunity is also already reflected in the shares. HPE now trades at roughly 13 times expected fiscal 2027 earnings, which reflects stronger AI expectations and possible Juniper benefits but raises the bar - HPE must deliver faster growth and better margins to justify the premium. It is no longer the cheap turnaround story.
Three catalysts could turn Evercore neutral on the name: integration of Juniper with improving margins, a more profitable revenue mix, and new growth from HPE's Helios platform starting in 2027 or 2028.
Coinbase (COIN) - Upgrade
In a down market, Coinbase rose, rallying about 7% at one point before easing to up 4.8%. The upgrade came ahead of the Clarity Act vote on September 15.
Compass Point upgraded Coinbase to neutral from sell, and raised its price target to $177. This is a move to the sidelines, not a fully bullish call - they do not see full upside. Coinbase has run more than 25% over the past month, including the current move, alongside gains in Bitcoin and crypto this year.
Bitcoin is recovering from what looks like a cyclical bottom. Bitcoin roughly trades in a four-year cycle, and the current cycle is tracking closely with past patterns, suggesting the worst of the downturn may be behind it. Improving sentiment is seen as good for Coinbase, especially for pulling retail investors back in.
