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Galaxy Digital stock has underperformed the market this year because of the ongoing crypto winter. It dropped to $19.9, down by over 57% from its highest point in October last year. Still, Citi analysts believe that this dip is a good buying opportunity and now expect it to jump by over 40% from the current level.
Citi Analysts Have Upgraded Galaxy Digital Stock
Galaxy Digital is a top company in the crypto and artificial intelligence (AI) industries, where it offers several solutions. It owns a platform for institutional crypto trading, an asset management business that manages assets for institutions, and an investment bank that advises crypto companies on M&A and fundraising.
In addition to these services, the company also offers crypto lending and staking solutions. Most recently, it has moved to the artificial intelligence industry and is building large data centers. It counts CoreWeave as its biggest data center client.
Citigroup analysts believe Galaxy Digital stock has more upside. In a note, Peter Christiansen said that he expects the business to do relatively well. He expects its stock to jump to $28, suggesting a 40% surge from the current level.
The bullish outlook is based on the view that the crypto market has more room to go in the near term. He also pointed to the company’s position in the tokenization and artificial intelligence industries.
The view is in line with Citigroup’s view that Bitcoin and Ethereum have more room to go. In a recent report, Citi said that Bitcoin would jump to $113,000 in the next 12 months. It expects that ETH price will jump to $3,028.
Additionally, Citi points to its data center projects, which are known as Helios 1 and Helios 2. It has already announced large clients, and Citi expects it to make more client announcements in the coming months. CoreWeave has inked a deal worth about $30 billion with Galaxy.
Analysts are Bullish on GLXY Stock
Other top analysts are bullish on the GLXY share price. MarketBeat data shows that there are 14 analysts tracking the company. Of these analysts, 10 have a buy rating, while 4 have a hold view. The average estimate among analysts is a target of $39, up 97% from the current level.
Morgan Stanley has a target of $43, while BTIG analysts have a target of $45. Rosenblatt and Piper Sandler have targets of $35 and $33.
The most recent results showed that Galaxy’s business remained under pressure because of the crypto winter. Its results showed that revenue dropped 15% to $8.7 billion, while net income improved to $85 million.
Analysts expect the upcoming results to show that its revenue dropped by 70% to $12.16 billion, with its annual revenue falling by 37% to $52 billion.
Galaxy Digital Stock Price Technical Analysis
The daily chart shows that GLXY stock formed a double-top pattern at $27.54 and a neckline at $21.70, its lowest level on September 16. This pattern often leads to a strong sell-off.
Galaxy has dropped below the 50-day and 200-day moving averages and the Major S/R pivot point of the Murrey Math Lines. Also, the Average Directional Index (ADX) has risen, indicating more downside for the stock.
These technicals suggest that the stock has more downside, potentially to $15. In the future, however, the stock is likely to bounce back, potentially to the Strong Pivot Reverse level of the Murrey Math Lines at $31.25.
