Key facts
- Citi upgraded Galaxy Digital to Buy from Neutral.
- Citi raised Galaxy Digital's price target to $28 from $26.
- The new price target for Galaxy Digital implies a 40.9% upside from its previous close of $19.87.
- Citi cited better data center economics and confidence in Galaxy Digital's AI infrastructure strategy for the upgrade.
- Citi analyst Peter Christiansen noted potential for a Helios II tenant announcement within six months.
- Galaxy Digital shares fell over 2% in morning trading despite the upgrade.
Citigroup has upgraded its rating on Galaxy Digital (GLXY) to "Buy" from "Neutral" and increased its price target to $28 from $26. The bank cited improved data center economics and greater confidence in the company's artificial intelligence infrastructure strategy as key drivers for the upgrade.
Analyst Peter Christiansen noted that Galaxy Digital's Helios I data center operations are performing better than anticipated. He also highlighted the potential for a Helios II tenant announcement within the next six months, which could offer more clarity on future earnings.
Despite the positive analyst action, Galaxy Digital shares fell more than 2% in morning trading as investors processed the revised expectations ahead of upcoming quarterly earnings. The company's stock has seen significant volatility, with the previous closing price at $19.87, suggesting a potential upside of approximately 40.9% based on Citi's new target.
In related moves, Citi also raised its price target for Coinbase (COIN) to $230 from $210, maintained its "Buy" rating, and upgraded Gemini (GEMI) to "Neutral" from "Sell" with a price target of $4.75. Conversely, Citi downgraded Securitize (SECZ) to "Neutral" from "Buy" and increased its price target for MicroStrategy (MSTR) to $240 from $136.