On Tuesday, Compass Point maintained a Buy rating on Galaxy Digital Holdings Ltd (GLXY:CN) (OTC: BRPHF) and significantly raised its price target to Cdn$18.00 from the previous Cdn$10.00. This adjustment follows Galaxy Digital's reported fourth-quarter earnings for 2023, which exceeded expectations with revenues amounting to $355 million and earnings per share (EPS) of $0.96.
The financial services firm also indicated that Galaxy Digital's income before tax is estimated at $300 million through the end of February. Compass Point anticipates a stronger-than-expected performance in the first quarter of 2024, citing the appreciation in cryptocurrency assets, increased global trading volumes, and heightened volatility in the market as contributing factors.
Compass Point released its full-year 2024 estimates for Galaxy Digital, projecting revenues of $987 million, EPS of $1.90, and an increase in book value to Cdn$10. The firm expressed confidence in Galaxy Digital's potential for growth, highlighting its strategic positioning to capitalize on the current cryptocurrency cycle, which is believed to be in its early stages.
The report noted that Galaxy Digital's stock performance has been closely correlated with cryptocurrency volatility, benefiting from the recent uptick in digital asset values. However, it is the company's operational model that Compass Point believes will drive substantial growth.
The anticipated success of Galaxy One, Galaxy Digital's brokerage platform, along with the expansion of digital asset infrastructure like Bitcoin mining and staking, are expected to become significant, high-margin revenue streams in the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.