Analyst James Faucette from Morgan Stanley maintained a Buy rating on Galaxy Digital and keeping the price target at $42.00.
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James Faucette has given his Buy rating due to a combination of factors related to Galaxy Digital’s current market position and potential future performance. Despite recent challenges in the crypto market and concerns over the creditworthiness of its key customer, CoreWeave, Faucette believes that Galaxy Digital is well-positioned to navigate these issues. The company’s exposure to the broader crypto market, while currently resulting in marked losses, is seen as a temporary setback rather than a long-term detriment.
Faucette acknowledges the recent decline in major cryptocurrencies like Bitcoin, Ethereum, and Solana, which has impacted Galaxy’s financials. However, he maintains confidence in the company’s strategic positioning and its ability to recover as market conditions stabilize. The decision to keep the base case valuation range unchanged reflects an optimistic outlook on Galaxy Digital’s resilience and growth potential, justifying the Buy rating despite the current market volatility.
Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Fiserv. According to TipRanks, Faucette has an average return of 3.9% and a 60.73% success rate on recommended stocks.