Jefferies initiates Galaxy Digital stock with Buy rating on crypto and AI potential

Investing.com - Jefferies initiated coverage on Galaxy Digital (TSX:GLXY) (NASDAQ:GLXY) with a Buy rating and a price target of $35.00 on Wednesday. The stock, currently trading at $29.08, has shown remarkable momentum with a 58.3% gain year-to-date, though InvestingPro data indicates it’s trading above its Fair Value.

The investment firm highlighted Galaxy Digital’s unique positioning to benefit from an improving regulatory environment for cryptocurrency and increasing demand for AI data centers. The company’s stock trades at a P/E ratio of 35.3x and has demonstrated strong momentum with an 18.7% gain in the past week.

Jefferies pointed to the CRWV lease at the company’s Helios site as a "transformational deal" that necessitates a reevaluation of the site’s value.

The firm also noted that the passage of the GENIUS Act provides a favorable market structure for Galaxy Digital’s Digital Assets business, which contributes to the positive rating.

Galaxy Digital operates across multiple sectors including digital asset trading, asset management, and infrastructure for both cryptocurrency and artificial intelligence applications.

In other recent news, Galaxy Digital has seen several significant developments. Piper Sandler has raised its price target for Galaxy Digital to $36 from $34, maintaining an Overweight rating. The firm highlighted Galaxy Digital’s potential benefits from increasing institutional cryptocurrency adoption and demand from AI and high-performance computing sectors. Additionally, Galaxy Digital has entered a strategic partnership with K Wave Media, where it will act as an asset manager and strategic advisor for K Wave’s bitcoin treasury strategy, and will also invest in K Wave Media. Furthermore, Galaxy Asset Management, an affiliate of Galaxy Digital, successfully closed its Galaxy Ventures Fund I with over $175 million in capital commitments, surpassing its initial $150 million target. The fund aims to invest in early-stage companies focused on blockchain infrastructure and applications, including areas like stablecoins and tokenization. These recent developments reflect Galaxy Digital’s active role in both strategic partnerships and investment ventures.

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