Galaxy Digital Inc (NASDAQ:GLXY) shares are rising Wednesday. Multiple Wall Street firms see significant upside in the stock after third-quarter earnings. Here’s what you should know.
- Galaxy Digital stock is showing exceptional strength. Why are GLXY shares rallying?
Galaxy Beats On Profit, Misses On Revenue
Galaxy’s adjusted profit came in at 83 cents a share, crushing Wall Street’s 11-cent forecast. Sales of $8.69 billion trailed the $11.44 billion analysts projected.
H.C. Wainwright analyst Mike Colonnese held the Buy rating but cut the target to $36 from $40, suggesting about 100% upside. The analyst believes Helios progress and a friendlier crypto mood matter more than looming policy and lending risks.
Colonnese pointed to management’s new goal of $800 million to $850 million in yearly data center lease revenue by the end of 2027, up from about $316 million. His math suggests roughly seven of the eight Phase II halls would be producing by then. Scarce 2028 power also gives Galaxy more leverage with buyers, the analyst added.
Helios II should start operating in mid-2028, though Texas regulatory uncertainty remains a risk. New lease announcements could give the stock a near-term lift.
Warmer digital asset sentiment lifted trading volume 12% from the prior quarter, and the average loan book grew 27%. Colonnese said the data center unit already holds over $1 billion in contracted annual revenue, which he believes is undervalued by the market.
StoneX analyst Mark Palmer also stayed bullish on Galaxy after earnings and left his $57 target unchanged. Palmer focused on a contract Galaxy refused to sign. CEO Michael Novogratz said the company negotiated all summer with a possible Helios II tenant, then walked away. President Chris Ferraro said Galaxy had the option to sign, but a sharp shift in the power market made it hold back.
Galaxy shares have lost about 30% this month over fears about CoreWeave Inc (NASDAQ:CRWV), currently its only customer. Palmer reads the walkaway as proof Galaxy will not struggle to fill the 830 megawatts Helios II has permits for.
GLXY Shares Are Climbing
GLXY Price Action: Galaxy shares were up 5.65% at $18.16 at the time of publication on Wednesday, according to Benzinga Pro.
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