Galaxy Digital Stock Extends Post-Earnings Rally Even As Analysts Trim Price Targets

• H.C. Wainwright cut its target to $36 from $40 but kept a ‘Buy’ rating.
• The firm, however, added that Galaxy was executing well at its data center campus in Texas.
• Fifteen of 16 analysts tracked by Koyfin rate the stock a ‘Buy’ or ‘Strong Buy’.

Galaxy Digital (GLXY) shares edged higher in morning trade on Wednesday, extending their post-earnings rally despite price target cuts.

H.C. Wainwright lowered its target for GLXY to $36 from $40 but kept a 'Buy' rating on the shares, according to TheFly.  The new target still implies about 110% upside from Tuesday's close.

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H.C. Wainwright said that Galaxy was executing well at Helios, its data center campus in Texas. Phase II of the project was fully funded and running on schedule. Funding for Phase III and leasing at Helios II are the next catalysts to watch, said the firm.

H.C. Wainwright expected progress at Helios and better crypto sentiment to outweigh near-term regulatory and credit market worries.

GLXY stock rose over 0.5% during morning trade. On Stocktwits, the retail sentiment around GLXY remained in the 'extremely bullish' zone, while chatter around it shifted to 'extremely high' from 'high' over the past day.

This came after a nearly 10% jump on Tuesday, the stock's best single-day gain in a month. 

Goldman Sachs’ Take

Goldman Sachs had a more measured view towards Galaxy. The bank cut its target to $20.50 from $24, which implies about 19% upside to Tuesday's close. Additionally, the firm kept a 'Neutral' rating on the stock.

The bank called the quarter a broad-based earnings beat with encouraging operating trends. The data center segment was mixed, it said. Still, management appeared slightly more confident about leasing its 830-megawatt Helios II site to a tenant with an investment-grade credit rating, according to the bank.

Notably, of the 16 analysts tracked by Koyfin, 15 have rated the stock a 'Buy' or 'Strong Buy' and one rated it a 'Hold.'

Galaxy Swings Back To Profit

Galaxy reported net income of $323 million for the third quarter on Tuesday, reversing an $85 million loss in the second quarter. 

Adjusted earnings came in at $0.83 per share. The data center business made its first full-quarter contribution as Helios Phase I leasing revenue kicked in, and Galaxy's board also approved another $200 million share buyback.

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