Galaxy Digital (GLXY) stock closed up more than 8% on Tuesday following spectacular third-quarter earnings. The positive results led several brokers to increase their price targets for the stock.
The company led by Mike Novogratz posted a record quarter, fueled by a whopping $9 billion investment in bitcoin. trading linked to a Satoshi-era wallet, broker Cantor said in a research report on Tuesday.
The brokerage reiterated its Overweight rating on Galaxy shares and raised its price target to $53 from $45, attributing the revision primarily to a higher valuation of the company’s data center business.
Galaxy shares fell 4.3% in premarket trading on Wednesday, to around $41.05.
Canaccord Genuity raised its price target on Galaxy to $50 from $34, while maintaining its Buy rating on the stock.
The company “remains a solid, diversified play in two of the most interesting growth sectors out there, cryptocurrency-related financial services combined with what is evolving as one of the best data center portfolios out there, focused on AI hosting,” analysts led by Joseph Vafi wrote in Tuesday’s report.
Wall Street brokerage Benchmark raised its price target on Galaxy to $57 from $40 and reaffirmed its buy rating.
The higher target reflects the company’s updated sum-of-the-parts analysis, which now takes into account Galaxy’s AI data center operations, along with its trading operations, lending, betting, asset management and cryptocurrency holdings, analyst Mark Palmer wrote in a note to clients on Wednesday.
Benchmark called the valuation conservative and noted that it only includes the 800 MW of capacity already contracted with CoreWeave (CRWV), leaving unaccounted for the additional 2.7 GW under regulatory review.
Cantor remains bullish on Galaxy, citing strong performance in its digital asset operations and growing institutional adoption as key tailwinds.
The broker noted that Galaxy’s digital asset business is “operating on all cylinders” and will benefit as more traditional players enter the crypto ecosystem.
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