IREN shares drop 3.3% after CCB downgrade and delayed revenue target

IREN shares fell 3.3% to $20.71 in morning trading after CCB Int’l downgraded the stock from "Outperform" to "Neutral" with a $40 price target, adding to pressure from last week's fiscal Q1 2027 earnings. The November 5 results showed AI cloud revenue nearly tripled quarter-over-quarter to $200 million, but management delayed its $4 billion annual recurring revenue target from end-2026 to at least January 2027, citing network infrastructure reconfiguration requested by Microsoft. JPMorgan cut its price target from $65 to $55, and Compass Point from $85 to $55, both citing funding uncertainty and expansion timing. Broader market weakness compounded the decline, with major indices down 0.5%. Analysts flagged a significant funding gap for fiscal 2027, with Microsoft representing nearly half of IREN's contracted backlog. The stock remains well below its 52-week high of $70.71, trading near session lows of $20.10.