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

H.C. Wainwright has initiated coverage on Galaxy Digital Holdings, assigning a Buy rating and a price target of C$24. Analyst Mike Colonnese emphasizes that the U.S.-based financial services firm, focused on digital assets, provides the diversified exposure that investors are seeking for new positions.

Colonnese points to several near-term catalysts for Galaxy, including anticipated growth as the cryptocurrency market gears up for a potential bull run in 2025. He notes that the current price of Galaxy’s GLXY stock does not yet reflect the full implications of this upcoming bull market.

The analyst forecasts a 36% upside for Galaxy stock, which was trading around C$17.63 at the time of the report. Factors supporting this positive outlook include increased institutional adoption, regulatory clarity in the U.S., and a potential uplisting to Nasdaq, likely occurring in 2025.

Colonnese highlights that Galaxy Digital shares have historically outperformed crypto prices during bull markets. He notes that, year-to-date in 2024, GLXY has returned approximately 70%, compared to about 50% for Bitcoin. “We believe we are just in the third inning of the current bull market,” he stated, predicting a significant rally for BTC and other cryptocurrencies in Q4 2024, extending at least into Q4 2025.

Founded in 2018, Galaxy Digital provides a comprehensive suite of digital asset services and products, including asset management and digital infrastructure solutions, such as BTC mining and network validator services. The company expects the digital asset market, currently valued at $2.3 trillion, to experience rapid growth amid increasing adoption.