Galaxy Digital gets Buy rating, C$24 price target from analyst

HC Wainwright initiated coverage on Galaxy Digital Holdings shares and offered a Buy rating and a C$24 price target.

Analyst Mike Colonnese states that shares of the US-based digital asset-focused financial services firm offer the diversified risks investors are looking for when looking for new positions.

Galaxy’s business also suggests several short-term catalysts, including fundamental growth amid the cryptocurrency’s upcoming 2025 bull market. The analyst noted that the current price of GLXY stock does not yet reflect that the bull market is fully priced in.

Analysts predict a 36% increase for Galaxy shares

Also bullish for the company are factors such as institutional adoption, regulatory clarity in the United States, and a rise in the Nasdaq that will likely come in 2025.

In this case, HC Wainwright is forecasting a 36% upside for the stock, with the price hovering around C$17.63 at the time.

Colonnese also highlights that Galaxy Digital shares have historically outperformed crypto prices during bull markets. This view of the four-year price cycle in the digital asset market shows GLXY will post a year-to-date return of around 70% in 2024, compared to around 50% for Bitcoin (BTC).

“We believe we are only in the third round of the current bull market,” the analyst said, adding that they expect BTC and other crypto assets to rebound sharply in Q4 2024 and continue at least through Q4 2025.

Founded in 2018, Galaxy Digital offers a full suite of digital asset services and products in global markets, including asset management and digital infrastructure solutions. The latter includes BTC mining and network verification services.

In a recent update, Galaxy stated that it expects digital assets to grow from the current $2.3 trillion market with rapid adoption.