Galaxy Digital (GLXY) shares closed over 8% higher on Tuesday following blow-out Q3 earnings. The positive results prompted a number of brokers to raise their price targets on the stock.
The company led by Mike Novogratz posted a record quarter, fueled by a massive $9 billion bitcoin BTC$108,067.05 trade linked to a Satoshi-era wallet, broker Cantor said in a research report Tuesday.
The broker reiterated its overweight rating on Galaxy shares and raised its price target to $53 from $45, attributing the revision primarily to a higher valuation for the company’s data center business.
Galaxy shares were 4.3% lower in pre-market trading on Wednesday, around $41.05.
Canaccord Genuity hiked its Galaxy price target to $50 from $34 while maintaining its buy rating on the stock.
The company “remains a solid diversified play across two of the most exciting growth sectors out there, crypto-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 the report on Tuesday.
Wall Street broker Benchmark raised its price target on Galaxy to $57 from $40, and reaffirmed its buy rating.
The higher target reflects the firm’s updated sum-of-the-parts analysis, which now factors in Galaxy’s AI data center operations, along with its trading, lending, staking, asset management, and crypto holdings, analyst Mark Palmer wrote in a Wednesday note to clients..
Benchmark called the valuation conservative, noting it only includes the 800 MW of capacity already contracted to CoreWeave (CRWV), leaving the additional 2.7 GW under regulatory review unaccounted for.
Cantor remains bullish on Galaxy, citing strong performance across 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 stands to benefit as more traditional players enter the crypto ecosystem.
Read more: Galaxy Digital Says Helios a ‘Gold Rush,’ Reveals Q3 Revenue Beat and Client Growth
