Intel stock spikes after report of possible US government stake
Investing.com - Goldman Sachs initiated coverage on Galaxy Digital (TSX:GLXY) (NASDAQ:GLXY) with a Neutral rating and a $30.00 price target. According to InvestingPro data, the stock currently trades at $28.90, with a P/E ratio of 35.3x and a Price/Book ratio of 6.9x, suggesting premium valuations.
The investment bank views Galaxy Digital as a "business in transition," evolving from its origins as a digital assets investment and merchant bank to a company that also provides AI data center infrastructure.
Goldman Sachs identified three key business segments for Galaxy Digital: its digital assets investment bank and asset manager, its Treasury holding on-balance-sheet digital asset investments, and its new data center segment.
The firm projects 5% revenue growth for Galaxy Digital from 2024 to 2028, with adjusted EBITDA margins expected to decline approximately 120 basis points to 66.1% during this period.
Goldman Sachs believes the data center segment offers "compelling" growth potential with long-term revenue growth beginning in 2026 and earnings starting in the second half of 2028, which could potentially reduce the company’s "elevated revenue and earnings volatility" over time.
In other recent news, Galaxy Digital Inc. has executed a significant bitcoin transaction, selling over 80,000 bitcoin valued at more than $9 billion for an early investor. This substantial transaction was part of the investor’s estate planning strategy. Meanwhile, Galaxy Digital announced the appointment of Doug Deason to its Board of Directors, increasing the board’s size to seven members. Deason will also join the Nominating and Corporate Governance Committee.
On the analyst front, Jefferies initiated coverage of Galaxy Digital with a Buy rating, citing the company’s potential to benefit from a favorable regulatory environment for cryptocurrency and the growing demand for AI data centers. Additionally, Piper Sandler raised its price target for Galaxy Digital to $36, maintaining an Overweight rating. Piper Sandler noted the firm’s strong position to capitalize on the increasing institutional adoption of cryptocurrency and the rising demand for power from AI and high-performance computing companies. These developments reflect Galaxy Digital’s strategic moves and the positive outlook from financial analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.