Rosenblatt Securities maintained its Buy rating on Galaxy Digital Holdings (GLXY), setting a $35.00 price target based on a 21x multiple of the firm’s 2027 adjusted EBITDA estimate. This represents 20% upside from the current price of $29.15 at time of publication.
Galaxy’s Q2 results fell short of Rosenblatt’s expectations: trading volumes declined 20% quarter-over-quarter and blockchain rewards came in at $43.8 million versus Rosenblatt’s $89.1 million forecast. However, net revenue of $18.2 million exceeded the $14.6 million estimate thanks to wider spreads. Digital Assets adjusted gross profit was $59.3 million, close to Rosenblatt’s $64.9 million projection.
Rosenblatt highlighted Galaxy’s Data Center segment as the primary growth driver. CoreWeave (CRWV) has exercised its option on Phase 3 of the Helios campus, adding 133 MW of IT capacity under a 15-year contract valued at approximately $4.5 billion. Galaxy also expanded its power footprint at Helios by acquiring an additional 160 acres and filing for a 1 GW interconnection request, efforts that would bring total campus size to over 1,500 acres and 3.5 GW of capacity upon approval.
With project financing for Phase 3 expected before quarter‐end and Q3 activity already off to a record start, Rosenblatt believes the revised estimates and modest price‐target reduction—from $36 to $35—appropriately reflect near-term headwinds while valuing the longer-term Data Center opportunity.
Read More: Galaxy Digital stock slumps despite positive Q2 earnings, CoreWeave deal expansion
At time of publication, GLXY is up 6.3% from yesterday’s close.
