Galaxy Digital (GLXY) shares surged over 8% on Tuesday after impressive Q3 earnings. The strong results led several brokers to increase their price targets on the stock.
Under the leadership of Mike Novogratz, the company recorded a phenomenal quarter, driven by a substantial $9 billion bitcoin transaction associated with a Satoshi-era wallet, as noted by broker Cantor in a research report on Tuesday.
The broker maintained its overweight rating on Galaxy shares and raised the price target to $53 from $45, mainly due to a higher valuation of the company’s data center business.
On Wednesday, Galaxy shares traded 4.3% lower in pre-market at around $41.05.
Canaccord Genuity raised its Galaxy price target from $34 to $50 while keeping its buy rating on the stock.
The company is described as a solid diversified investment across two of the most promising growth sectors: crypto-related financial services and a robust data center portfolio focused on AI hosting, according to analysts led by Joseph Vafi.
Wall Street broker Benchmark increased its price target for Galaxy from $40 to $57, reaffirming its buy rating.
This higher target is based on the firm’s updated sum-of-the-parts analysis, incorporating Galaxy’s AI data center operations alongside its trading, lending, staking, asset management, and crypto holdings, as noted by analyst Mark Palmer in a Wednesday report to clients.
Benchmark characterized the valuation as conservative, as it only accounts for the 800 MW of capacity contracted to CoreWeave (CRWV), omitting the additional 2.7 GW undergoing regulatory review.
Cantor remains optimistic about Galaxy, citing robust performance in its digital asset operations and increasing institutional adoption as key advantages.
The broker emphasized that Galaxy’s digital asset business is “operating on all cylinders” and stands to gain as more traditional entities join the crypto space.
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