Is There Now An Opportunity In Iren SpA (BIT:IRE)?

Iren SpA (BIT:IRE), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the BIT. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Iren’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Iren

Is Iren Still Cheap?

According to my valuation model, Iren seems to be fairly priced at around 8.27% above my intrinsic value, which means if you buy Iren today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth €1.70, there’s only an insignificant downside when the price falls to its real value. What's more, Iren’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Iren look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Iren's earnings over the next few years are expected to increase by 28%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? IRE’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on IRE, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, Iren has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

If you are no longer interested in Iren, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.