Shares of Galaxy Digital (GLXY) closed more than 8% higher on Tuesday after reporting strong third-quarter earnings. The positive results prompted several brokers to raise their price targets on the stock.
Mike Novogratz-led company posts record quarter on the back of a whopping $9 billion worth of Bitcoin Broker Kantar said in a research report on Tuesday that the trading is linked to Satoshi-era wallets.
The broker reiterated its Overweight rating on Galaxy shares and raised its price target to $53 from $45, attributing the revision primarily to the company’s higher valuation for its data center business.
Galaxy shares were down 4.3% to $41.05 in pre-market trading on Wednesday.
Canaccord Genuity raised its Galaxy price target from $34 to $50 while maintaining its buy rating on the stock.
The company “remains a solid diversified play in two of the most exciting growth sectors, crypto-related financial services while growing into one of the best data center portfolios around,” analysts led by Joseph Vafi wrote in a report Tuesday, focused on AI hosting.
Wall Street broker Benchmark raised its price target on Galaxy to $57 from $40, and reaffirmed its buy rating.
Analyst Mark Palmer wrote in a note to clients on Wednesday that the higher target reflects the company’s updated sum-of-the-parts analysis, which now covers Galaxy’s AI data center operations as well as its trading, lending, staking, asset management and crypto holdings.
Benchmark called the valuation conservative, noting that it only includes 800 MW of capacity already contracted for CoreWeave (CRWV), leaving an additional 2.7 GW under regulatory review.
Kantar 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 “working on all cylinders” and will benefit from more traditional players entering the crypto ecosystem.
Read more: Galaxy Digital calls Helios ‘gold rush’, reveals third quarter revenue beat and customer growth