Galaxy Digital Crypto Stock (BRPHF) New Buy on Canaccord
Canaccord Genuity initiated research coverage on Galaxy Digital (BRPHF) with a Buy rating and a one-year price target of C$17, implying an upside of over 28% from the last closing price.
By having exposure on both its balance sheet and operations to the cryptocurrency ecosystem, GLXY “represents one of the most diversified ways to play digital assets,” Canaccord analysts said in a note.
“Overall, we view Galaxy as well positioned ahead of what we believe should be an improving outlook for digital assets in 2024,” they added.
Canaccord calls Galaxy's institutional trading business a “stock winner,” citing several positive catalysts.
In particular, this segment should take advantage of the anticipated widespread launch of Galaxy One, its exclusive cryptocurrency brokerage platform, along with the approval of several BTC spot ETFs in the US and the upcoming Bitcoin halving, which are expected to drive spot prices higher.
“This, in turn, helps Galaxy's trading business, given the potentially higher volatility and overall dollar-weighted trading volumes,” the analysts wrote.
They also noted that GLXY's balance sheet is heavily influenced by the spot prices of the underlying cryptocurrencies, which are adjusted quarterly.
“As such, we would expect to see Galaxy's book value in the fourth quarter to be appreciably higher than it was exiting the third quarter.”
