Citi Upgrades Galaxy Digital to Buy, Raises GLXY Price Target to $28

Citi has upgraded Galaxy Digital (GLXY) from Neutral to Buy, raising its price target from $26 to $28. The new target indicates a 7.69% rise and indicates around 40.9% upside from the previous closing price of $19.87. The bank noted better data center economics and higher confidence in Galaxy Digital’s AI infrastructure strategy.

Ad

Ad

Citi Upgrades Galaxy Digital Stock on Stronger Helios Data Center Outlook

Citi analyst Peter Christiansen said Galaxy Digital’s Helios I data center economics were better than previously expected. The rating upgrade was backed by the assessment that the company is continuing the expansion of its operations involving artificial intelligence infrastructure.

Christiansen described the stock’s current valuation as offering an attractive balance between potential returns and risks. “Now, we think the risk/reward is attractive,” he said, attributing the improvement on the infrastructure side to the company.

The analyst also spotted a potential Helios II tenant announcement in the next six months. Such an agreement could provide greater visibility into future earnings and reduce uncertainty surrounding the data center business.

Galaxy Digital shares declined more than 2% during Tuesday morning trading despite the upgrade. The trading volume came in as investors digested the revised expectation in the lead-up to the next round of quarterly earnings.

Ad

Ad

Citi Raises Coinbase Price Target and Upgrades Gemini Stock

Citi also upped its price target for Coinbase (COIN) from $210 to $230, and kept its Buy rating unchanged. The new target implies about a 27.5% upside from Coinbase’s previous close price of $180.39.

The change comes on the heels of other brokerage changes in the past few weeks, such as Morgan Stanley’s upward revision of its price target for Coinbase stock. Citi has kept its “favored outlook” on Coinbase, while Morgan Stanley has kept its “equal weight” rating.

Meanwhile, Citi has upgraded the rating on Gemini (GEMI) to Neutral from Sell and its price target to $4.75 from $3.20. The adjusted target implies around 15.6% upside from Gemini’s previous close price of $4.11.

Citi linked the Gemini upgrade to the stock’s recent decline and its revised assessment of valuation. The bank also highlighted areas like tokenization and market infrastructure that will help its wider perspective on cryptocurrency-related companies.

Citi Downgrades Securitize Ahead of Third-Quarter Earnings

Despite its positive assessment of tokenization, Citi downgraded Securitize (SECZ) from Buy to Neutral. The shift was based on recent trading activity, but the bank’s interest in tokenized financial assets remained the same.

The rating changes also coincide with Citi’s earlier call to raise Strategy’s MSTR stock price target from $136 to $240. That revision came as Bitcoin recovered above $86,000 and investors continued assessing cryptocurrency-related stocks.

Citi’s latest changes precede the release of third-quarter results, which are due to start in the coming weeks in October. The results will provide updated information about cryptocurrency trading, tokenization, and AI infrastructure operations.