Galaxy Digital (GLXY) stock closed up more than 8% on Tuesday after the company reported significantly inflated third-quarter results. Many securities companies raised their price targets for the company's stock in response to the strong results.
The company led by Mike Novogratz posted a record quarter, backed by a massive $9 billion in Bitcoin. BTC$108,067.05 Broker Kantor said in a research report on Tuesday that there are transactions related to Satoshi-era wallets.
The broker reiterated its overweight rating on Galaxy stock and raised its price target from $45 to $53, primarily due to the increased valuation of the company's data center business.
Galaxy stock fell 4.3% to around $41.05 in premarket trading on Wednesday.
Canaccord Genuity raised its price target on Galaxy from $34 to $50, while maintaining a buy rating on the stock.
Analysts led by Joseph Vuffy said in a Tuesday report that the company “continues to have a solid diversification across two of its most exciting growth areas, combining cryptocurrency-related financial services with what is evolving as one of the best data center portfolios with a focus on AI hosting.”
Wall Street brokerage Benchmark raised its price target on Galaxy from $40 to $57 and reaffirmed its buy rating.
The target increase reflects the company's latest aggregate analysis, which takes into account Galaxy's AI data center operations, as well as trading, lending, staking, asset management and crypto holdings, analyst Mark Palmer wrote in a note to clients on Wednesday.
Benchmark rated this assessment as conservative, noting that it only includes the 800MW of capacity already contracted with CoreWeave (CRWV) and does not take into account the additional 2.7GW that is under regulatory review.
Kanter remains bullish on Galaxy, citing strong performance across its digital asset business and growing institutional adoption as key tailwinds.
The broker noted that Galaxy's digital assets business is “operating on all cylinders” and stands to benefit as more traditional players enter the cryptocurrency ecosystem.
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