Galaxy Digital Holdings gets new $60.00 target from this analyst

ATB Capital Markets analyst Martin Toner raised his price target on Galaxy Digital Holdings (Galaxy Digital Stock Quote, Chart, News, Analysts, Financials TSX:GLXY) to C$60.00 from C$50.00 and maintained an “Outperform” rating in an Oct. 19 report, saying the company is poised to deliver record third-quarter results driven by “windfall” trading and advisory profits, as well as progress across its digital asset and high-performance computing businesses.

“Galaxy is entering a pivotal phase,” Toner said. “We’re raising our estimates to account for record trading activity, new asset management mandates, and a busy advisory quarter. While our forecasts remain conservative, we see potential for windfall profits from several sources, including the $9-billion ‘whale’ Bitcoin trade disclosed in July.”

Toronto-based Galaxy Digital is a diversified financial services and investment firm focused on the digital asset, blockchain, and high-performance computing sectors. Founded by Mike Novogratz in 2018, the company operates through trading, investment banking, asset management, and mining infrastructure divisions, with additional exposure to venture investments and emerging blockchain platforms.

Toner said Q3 results, scheduled for release on Oct. 21, should reflect a significant rebound in digital asset revenues after a subdued Q2. He expects total revenue of $21.2-billion, gross profit of $435-million, and net income of $277-million, supported by surging trading volumes, a sharp rebound in crypto prices, and record advisory activity.

“Spot crypto trading rose about 25% sequentially, while Bitcoin gained 5%, Ethereum 65%, and Solana 42% during the quarter,” Toner noted. “Based on Galaxy’s $1.3-billion net digital asset position at the end of Q2, we estimate Treasury-related gross profit of $251-million.”

He also highlighted several strategic developments during the quarter. CoreWeave exercised its final option at Galaxy’s Helios site, with Galaxy co-leading a US$1.65-billion financing. The company also tokenized its Nasdaq-listed shares through a partnership with Superstate, becoming the first to do so, and launched GalaxyOne, a fintech platform for U.S.-based high-net-worth investors offering integrated crypto, equities, and yield products. Additionally, Galaxy announced a US$460-million strategic investment from a major global asset manager, whose identity remains undisclosed.

Between strategic investments, tokenization of its equity, numerous financings, and the launch of GalaxyOne, management will have much to discuss on the earnings call, Toner said. He expects record results across several metrics.

He also pointed to Galaxy’s expanding high-performance computing footprint, with 3.5 gigawatts of potential power capacity at Helios, including a new 1GW interconnect request and 133MW Phase I buildout scheduled for energization in the first half of 2026.

“Our $60 target is based on a sum-of-the-parts valuation using 18× 2026 adjusted gross profit (up from 15× previously),” he said. “We also add about $7.00 per share in option value for Galaxy’s 2.7GW of uncontracted power capacity. At the current valuation, roughly 6.4× next-12-month EV/Adjusted EBITDA versus a five-year average of 8.9×, we view the stock as undervalued given its scale, strategic optionality, and strong position within institutional digital asset markets.”

Novogratz recently commented on social media that Galaxy is “busier than at any point since 2018 … and we believe Q3 will prove that statement correct.”

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