Key Takeaways
- • Rosenblatt cut its price target on Galaxy Digital Holdings to $30 from $35 while maintaining a Buy rating, citing market conditions rather than a change in fundamentals.
- • Shares trade at $15.06, at their 52-week low and 62% below the 52-week high of $39.65, according to Investing.com.
- • Rosenblatt expects third-quarter 2026 results, due before market open on Tuesday, to show continued progress in the Data Center segment.
- • The firm argues the market is overly discounting Galaxy's optionality and power pipeline, and that cryptocurrency has shifted from a headwind to a tailwind for the Digital Assets franchise.
- • Other analysts remain constructive: StoneX reiterated Buy with a $57 target, Compass Point raised its target to $36 from $35, and H.C. Wainwright maintained Buy with a $40 target.
Summary
Rosenblatt lowered its price target on Galaxy Digital Holdings Ltd. to $30 from $35 on Monday while maintaining its Buy rating, according to Investing.com. The shares currently trade at $15.06, sitting at their 52-week low and 62% below the 52-week high of $39.65. The revision was issued ahead of the company's third-quarter 2026 results, scheduled for release Tuesday before market open.
Rosenblatt said it remains more optimistic than current share price action suggests, despite Galaxy Digital's high-performance computing (HPC) contracts being exclusively with CoreWeave. The firm argued that the market is overly discounting the company's optionality and power pipeline. It expects third-quarter results to show continued progress in the Data Center segment and noted that cryptocurrency has shifted from a headwind to a tailwind for Galaxy's core Digital Assets franchise.
Rosenblatt cited the company's strong balance sheet, including fully funded Phase 2 of its data center build, and a more diversified revenue mix than most HPC peers as grounds for maintaining its Buy rating. The article notes that eight analysts have revised their earnings estimates upward for the upcoming period, and that analysts forecast the company will be profitable this year with an EPS estimate of $1.91, according to InvestingPro data.
The revision comes after Galaxy reported a second-quarter loss, with a GAAP net loss of $85 million, or $0.09 per share, and adjusted EBITDA of negative $77 million. The company highlighted completion of phase one of its Helios data center as a significant step in its AI infrastructure strategy. Other recent analyst actions are mixed in direction but constructive in tone: StoneX reiterated Buy with a $57 target despite recent declines, Compass Point raised its target to $36 from $35 citing improvements in the crypto market and potential upcoming deals, and H.C. Wainwright kept Buy with a $40 target while noting second-quarter results fell short of expectations.
Rosenblatt said it remains more optimistic than current share price action suggests, despite Galaxy Digital's high-performance computing (HPC) contracts being exclusively with CoreWeave. The firm argued that the market is overly discounting the company's optionality and power pipeline. It expects third-quarter results to show continued progress in the Data Center segment and noted that cryptocurrency has shifted from a headwind to a tailwind for Galaxy's core Digital Assets franchise.
Rosenblatt cited the company's strong balance sheet, including fully funded Phase 2 of its data center build, and a more diversified revenue mix than most HPC peers as grounds for maintaining its Buy rating. The article notes that eight analysts have revised their earnings estimates upward for the upcoming period, and that analysts forecast the company will be profitable this year with an EPS estimate of $1.91, according to InvestingPro data.
The revision comes after Galaxy reported a second-quarter loss, with a GAAP net loss of $85 million, or $0.09 per share, and adjusted EBITDA of negative $77 million. The company highlighted completion of phase one of its Helios data center as a significant step in its AI infrastructure strategy. Other recent analyst actions are mixed in direction but constructive in tone: StoneX reiterated Buy with a $57 target despite recent declines, Compass Point raised its target to $36 from $35 citing improvements in the crypto market and potential upcoming deals, and H.C. Wainwright kept Buy with a $40 target while noting second-quarter results fell short of expectations.
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