Galaxy Digital (GLXY) Price Targets Hiked Across Street Following Record 3Q Earnings

Galaxy Digital (GLXY) saw its shares soar over 8% on Tuesday after reporting stellar Q3 earnings. The company, led by Mike Novogratz, had a record-breaking quarter, driven by a massive $9 billion bitcoin trade linked to a Satoshi-era wallet. This impressive performance prompted several brokers to raise their price targets on the stock.

Cantor, one of the brokers, reiterated its overweight rating on Galaxy shares and upped its price target to $53 from $45. The revision was mainly attributed to a higher valuation for the company’s data center business. Despite this positive news, Galaxy shares dipped by 4.3% in pre-market trading on Wednesday, hovering around $41.05.

Canaccord Genuity also raised its price target on Galaxy to $50 from $34 while maintaining its buy rating on the stock. The analysts at Canaccord highlighted Galaxy as a solid diversified investment in two high-growth sectors – crypto-related financial services and AI hosting through data centers.

Wall Street broker Benchmark joined the chorus by increasing its price target on Galaxy to $57 from $40, reaffirming its buy rating. The updated target reflects a revised sum-of-the-parts analysis that now includes Galaxy’s AI data center operations alongside its various other business segments.

Benchmark noted that the valuation is conservative, as it only accounts for the 800 MW of capacity already contracted to CoreWeave (CRWV), leaving out the additional 2.7 GW currently under regulatory review. Despite this, Benchmark remains optimistic about Galaxy’s prospects, citing strong performance in digital asset operations and growing institutional adoption as key drivers.

In conclusion, Galaxy Digital’s Q3 earnings report has impressed investors and analysts alike, leading to a surge in share prices and a slew of price target revisions from brokers. The company’s strong performance across various business segments and the overall bullish sentiment towards the crypto sector bode well for its future growth and success.