Canaccord Genuity has started a research on Galaxy Digital (BRPHF) with a Buy recommendation and a one-year price target of $17, indicating a potential upside of more than 28% from the most recent closing price.
Galaxy Digital, with investments and trading activities in the cryptocurrency sector, is described by Canaccord analysts as “one of the most comprehensive ways to invest in digital currencies,” according to their report.
“We believe Galaxy Digital is in a strong position in what we expect will be a favorable environment for digital currencies in 2024,” they said.
Canaccord rates Galaxy’s institutional trading division as a “market share winner,” identifying several favorable developments.
In particular, this business unit is expected to benefit from the broad introduction of Galaxy One, its proprietary cryptocurrency prime brokerage service, as well as the approval of various Bitcoin exchange-traded funds (ETFs) in the United States and the upcoming Bitcoin halving event, which will likely increase the spot price of Bitcoin.
“This should improve Galaxy’s trading operations due to potentially greater price fluctuations and increased trading volumes measured in dollars,” the analysts commented.
They also recalled that the value of GLXY’s assets is significantly influenced by the market prices of cryptocurrencies, which are recalculated every quarter.
“Therefore, we expect Galaxy’s book value for the fourth quarter to be significantly higher than at the end of the third quarter.”
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