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H.C. Wainwright has initiated coverage on Galaxy Digital Holdings stock, offering a Buy rating and a price target of C$24.
Analyst Mike Colonnese states that the U.S.-based digital asset-focused financial services firm’s shares offer the diversified exposure investors seek when looking for new positions.
Galaxy’s business also suggests several near-term catalysts, including fundamental growth amid cryptocurrency’s impending 2025 bull market. The current price of GLXY stock does not yet reflect that a bull market has fully been priced in, the analyst noted.
Analyst forecasts 36% upside for Galaxy stock
Also bullish for the company are factors such as institutional adoption, regulatory clarity in the United States, and a Nasdaq uplisting, likely to come in 2025.
In this case, H.C. Wainwright sees 36% upside for the stock, with price at the time hovering around C$17.63.
Colonnese also highlights that Galaxy Digital shares have historically outperformed crypto prices during bull markets. This outlook on the four-year price cycle across the digital assets market shows GLXY having approximately 70% year-to-date return in 2024, compared to about 50% for Bitcoin ($BTC).
“We believe we are just in the third inning of the current bull market,” the analyst noted, adding that they expect $BTC and other crypto assets to rally sharply in Q4 2024 and run at least until Q4 2025.
Founded in 2018, Galaxy Digital offers a full suite of digital asset services and products across global markets, including asset management and digital infrastructure solutions. The latter includes $BTC mining and network validator services.
In a recent update, Galaxy noted it expects digital assets to grow from the current $2.3 trillion market amid rapid adoption.