Shares of Galaxy Digital (GLXY) closed up more than 8% on Tuesday after blowout third-quarter results. The positive results have prompted a number of brokers to raise their price targets on the stock.
The Mike Novogratz-led company posted a record quarter, fueled by a whopping $9 billion in bitcoin. trading linked to a Satoshi-era portfolio, broker Cantor said in a research report on Tuesday.
The broker reiterated its overweight on Galaxy shares and raised its price target from $45 to $53, attributing the revision primarily to a higher valuation of the company’s data center business.
Galaxy shares were down 4.3% premarket Wednesday, around $41.05.
Canaccord Genuity raised its Galaxy price target from $34 to $50 while maintaining its Buy rating on the stock.
The company “remains a strong and diversified player in two of the market’s most exciting growth sectors, crypto-related financial services combined with what is evolving as one of the best data center portfolios, focused on hosting AI,” analysts led by Joseph Vafi wrote in the report on Tuesday.
Wall Street brokerage Benchmark raised its price target on Galaxy from $40 to $57 and reaffirmed its buy rating.
The higher target reflects the company’s updated overall analysis, which now takes into account Galaxy’s AI data center operations, as well as its trading, lending, staking, asset management and crypto holdings, analyst Mark Palmer wrote in a note to clients Wednesday.
Benchmark called the assessment conservative, noting that it only includes the 800 MW of capacity already subscribed to CoreWeave (CRWV), leaving the additional 2.7 GW under regulatory review unaccounted for.
Cantor remains bullish on Galaxy, citing the strong performance of its digital asset operations and growing institutional adoption as key favorable factors.
The broker noted that Galaxy’s digital assets business is “running on all cylinders” and stands to benefit from more and more traditional players entering the crypto ecosystem.
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