ATB trims price target on Galaxy Digital

ATB Capital Markets analyst Martin Toner says Galaxy Digital’s (Galaxy Digital Stock Quote, Chart, News, Analysts, Financials NASDAQ:GLXY) next quarterly report should give investors a clearer look at its transition into high-performance computing and AI infrastructure.

In a July 20 report, Toner maintained his “Outperform” rating on Galaxy but lowered his target to $44 .00 from $47.00

“Investors are closely watching the company’s ongoing transition from a digital asset firm into a major high-performance computing and AI infrastructure provider,” Toner said.

The main focus is the Helios data centre campus in West Texas. Galaxy completed Phase 1 by quarter-end, delivering 133 megawatts of critical IT load to tenant CoreWeave. Rent for the first phase began during Q2, which should give the market its first look at revenue from the converted facility.

Phase 2 is now in early construction and is expected to add another 260 megawatts of critical IT load, with full delivery expected in 2027. Toner said investors will be watching for updates on project financing, supply chain stability and the timeline for remaining master lease commitments.

Toner lowered his 2026 revenue forecast by $749-million to $43.90-billion and his 2027 forecast by $604-million to $60.53-billion, reflecting an updated Bitcoin forecast.

Despite the lower revenue outlook, his 2026 gross profit estimate rose by $591-million to $1.02-billion, while net income moves to a positive $337-million from a prior loss forecast of $254-million. His 2026 diluted EPS estimate is now 55 cents.

For 2027, Toner lowered his net income estimate by $656-million to $233-million and cut his diluted EPS estimate to 28 cents. He said the changes are driven mainly by the digital assets segment and swings in treasury and corporate net income, while his data centre estimates are unchanged.

Toner values Galaxy using a sum-of-the-parts approach, with core digital asset operations valued at 18 times 2026 adjusted gross profit. He said high-performance computing represents about $27.42 per share in contracted value and optionality.

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