Buy Rating for Galaxy Digital: Accounting Changes and Undervaluation Drive Positive Outlook

BTIG analyst Gregory Lewis maintained a Buy rating on Galaxy Digital (GLXY – Research Report) yesterday and set a price target of $26.50.

Gregory Lewis has given his Buy rating due to a combination of factors including Galaxy Digital’s recent accounting changes and its valuation metrics. The company has updated its revenue estimates significantly upwards for 2025 and 2026, reflecting a new accounting method that considers the fair value of digital asset transactions as revenue. This adjustment has resulted in a substantial increase in projected revenues, despite a decrease in operating income estimates due to the same accounting changes.
Furthermore, Galaxy Digital’s stock is trading at a low enterprise value to sales ratio, which suggests it is undervalued compared to its peers. The price target of $26.5 is supported by a sum-of-the-parts analysis that values the company’s approved power capacity and applies a premium to its digital asset holdings. This premium is justified by historical trends and the potential for growth due to recent increases in cryptocurrency activity.

In another report released on May 21, ATB Capital Markets also maintained a Buy rating on the stock with a $42.00 price target.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GLXY in relation to earlier this year.