Galaxy Digital ( GLXY ) stock closed more than 8% higher on Tuesday after blowing out third-quarter earnings. The positive results prompted a number of brokers to raise their price targets on the share.
The company led by Mike Novogratz posted a record quarter, fueled by a massive $9 billion bitcoin trading linked to a Satoshi-era wallet, broker Cantor said in a research report on Tuesday.
The brokerage reiterated its overweight rating on Galaxy shares and raised its price target to $53 from $45, primarily attributing the revision to a higher valuation of the company’s data center business.
Galaxy shares were 4.3% lower in premarket trading Wednesday, around $41.05.
Canaccord Genuity raised its Galaxy price target to $50 from $34, while maintaining its buy rating on the stock.
The company “remains a solidly diversified play across two of the most exciting growth sectors out there, crypto-related financial services combined with what is developing 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 brokerage 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 takes into account Galaxy’s AI data center operations along with its trading, lending, betting, asset management and crypto holdings, analyst Mark Palmer wrote in a Wednesday note to clients.
Benchmark called the valuation conservative, noting that it only includes the 800 MW of capacity already contracted to CoreWeave ( CRWV ), leaving the additional 2.7 GW under regulatory review.
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 “firing on all cylinders” and stands to benefit as more traditional players enter the crypto ecosystem.
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