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Investing.com - Piper Sandler raised its price target on Galaxy Digital (NASDAQ:GLXY) to $42.00 from $36.00 on Wednesday, while maintaining an Overweight rating on the stock. The company’s shares, currently trading at $33.83, have shown remarkable momentum with a 188% surge over the past six months. According to InvestingPro analysis, Galaxy Digital appears undervalued based on its Fair Value calculations.
The price target increase represents approximately 15 times 2027 estimated adjusted gross profit, up from about 14 times in the firm’s previous valuation model, according to Piper Sandler’s updated sum-of-the-parts analysis.
Galaxy Digital has expanded its potential mining capacity by adding an incremental 1 GW of potential power capacity at its Helios facility through the purchase of an adjacent plot of land.
Piper Sandler has adjusted its capital expenditure assumptions for the Helios facility to approximately $15 million per critical IT megawatt, up from $14 million in its previous analysis.
The firm also increased its terminal multiple assumption to 15 times EV/EBITDA in its discounted cash flow models, up from 13 times previously, citing "increased confidence in GLXY’s ability to execute on the Helios build out" while noting this still represents a steep discount to Digital Realty Trust and Equinix.
In other recent news, Galaxy Digital Inc. has announced several significant developments. The company has secured a $1.4 billion project financing facility to expand its Helios datacenter campus in West Texas, focusing on artificial intelligence and high-performance computing operations. This financing is structured with an 80% loan to cost and a 36-month term. Additionally, Galaxy Digital has partnered with Superstate to tokenize its SEC-registered equity shares, marking a pioneering move in the blockchain space. Stockholders can now tokenize their shares through Superstate’s Opening Bell platform. Furthermore, Galaxy Digital’s partnership with Soluna Holdings will see a 48 MW expansion of bitcoin mining operations at Soluna’s Project Kati 1 in Texas. In analyst news, Piper Sandler has reiterated its Overweight rating for Galaxy Digital, with a price target of $36.00. Lastly, Galaxy’s subsidiary, GK8, has been chosen by Korean custodian BDACS to provide secure digital asset custody technology.
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