TLDR
- Citi upgraded Galaxy Digital (GLXY) to Buy from Neutral and raised its price target to $28 from $26.
- GLXY closed at $19.87 before the call, and the new target implies about 41% upside.
- The stock fell more than 2% in Tuesday morning trading and opened at $19.71 on Wednesday.
- Citi pointed to better Helios I economics and a possible Helios II tenant announcement within six months.
- Eleven of 14 analysts rate GLXY a buy, with an average 12-month target of $39.33.
Citi has upgraded Galaxy Digital (GLXY) to Buy from Neutral. The bank also lifted its price target to $28 from $26.
GLXY closed at $19.87 before the call and opened at $19.71 on Wednesday. The stock fell more than 2% in Tuesday morning trading despite the upgrade.
The new target implies about 41% upside from that prior close. It is an 8% increase from Citi’s old target.
Analyst Peter Christiansen said Helios I data center economics are better than the bank expected. He added that the risk and reward now look attractive.
Christiansen also sees a possible Helios II tenant announcement within six months. Such a deal could give investors a clearer view of future earnings.
What Other Analysts Say
Eleven of 14 analysts rate GLXY a buy, and three say hold. MarketBeat lists the average 12-month target at $39.33.
Not every recent move was an upgrade. Piper Sandler cut its target to $33 from $36 and kept an overweight rating.
Morgan Stanley lowered its target to $43 from $48, also with an overweight rating. Chardan Capital reaffirmed its buy rating and $35 target.
Zacks Research moved the stock to hold from strong sell in September. The mood is better, though still mixed.
Trading Data and Insider Activity
GLXY has a 12-month range of $16.43 to $45.92. Its market cap sits at $7.70 billion.
The stock trades below its 50-day average of $23.03 and its 200-day average of $25.07. Its beta is 5.11, so expect a bumpy ride in both directions.
The company beat estimates on August 5. It lost $0.09 per share against an expected loss of $0.36.
Director Douglas Deason bought $258,480 worth of stock on August 12 at $21.54. Insider Matthew Friedrich sold $134,961 worth on September 9 at $27.03 under a pre-arranged plan, and insiders own 51.53% of the company.
Citi made other calls the same day. It raised its Coinbase (COIN) target to $230 from $210 and kept a Buy rating, which implies about 28% upside from $180.39.
Citi upgraded Gemini (GEMI) to Neutral from Sell and lifted its target to $4.75 from $3.20. It also cut Securitize (SECZ) to Neutral from Buy.
Citi earlier raised its Strategy (MSTR) target to $240 from $136 as Bitcoin recovered above $86,000. Third-quarter results from crypto firms are due to start in the coming weeks, and GLXY opened Wednesday at $19.71.
