Rosenblatt lowers Galaxy Digital stock price target to $35 on weaker Q2

Published 06/08/2025, 13:14
Rosenblatt lowers Galaxy Digital stock price target to $35 on weaker Q2

Investing.com - Rosenblatt has reduced its price target on Galaxy Digital (TSX:GLXY) (NASDAQ:GLXY) to $35.00 from $36.00 while maintaining a Buy rating following the company’s second-quarter results. The target remains within the current analyst range of $23.91-$36.28, with the stock currently trading at $27.70.

The financial services firm cited weaker-than-expected second-quarter performance from the digital asset and blockchain company, though it remains bullish on Galaxy Digital’s prospects given "clear progress and encouraging trends." The $10.3 billion market cap company has demonstrated strong momentum, with a remarkable 52.66% return year-to-date.

Rosenblatt noted that while trading volumes and blockchain activity decreased sharply in the second quarter, the third quarter has started at record levels, leading to only slight reductions in their estimates.

The firm emphasized that Galaxy Digital’s stock value is increasingly tied to its high-performance computing (HPC) operations rather than its core cryptocurrency business, highlighting progress with "another CoreWeave contract and significant expansion of its power footprint."

Rosenblatt identified project financing as a likely near-term catalyst for the stock, alongside improving fundamentals, and recommended buying on any sustained weakness related to second-quarter results. The stock currently trades at a P/E ratio of 35.31 and a Price/Book ratio of 6.93, reflecting the market’s growth expectations.

In other recent news, Galaxy Digital Inc. reported its financial results for the second quarter of 2025, showcasing a strong adjusted gross profit of $299 million. This performance comes amid market reactions that saw the company’s stock price decline, reflecting investor sentiment and broader market conditions. Despite the dip in stock price, the earnings report highlights the company’s significant profitability. Analysts have been closely monitoring Galaxy Digital’s financial health, with some firms adjusting their future earnings projections based on the latest results. The company’s robust profit figures are a focal point for investors assessing its financial trajectory. These developments are part of a broader context of market conditions influencing investor decisions. As analysts continue to evaluate Galaxy Digital, the company’s earnings and market position remain under scrutiny.

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