H.C. Wainwright analyst Mike Colonnese has reiterated their bullish stance on BRPHF stock, giving a Buy rating on March 28.
Mike Colonnese has given his Buy rating due to a combination of factors, primarily centered around Galaxy Digital Holdings’ recent strategic developments and future growth potential. The company announced a significant 15-year HPC/AI hosting agreement with CoreWeave, expected to generate substantial revenue, which could transform Galaxy’s financial landscape. This deal alone is projected to bring in $4.5 billion over the contract’s duration, significantly boosting annual revenues and contributing to nearly 70% of the company’s total revenue for 2024.
Moreover, the favorable terms of this agreement, including high EBITDA margins and the strategic retrofitting of existing infrastructure, position Galaxy well within the competitive HPC market. Despite the initial capital expenditure required, the long-term benefits and additional capacity for future expansion with CoreWeave or other partners enhance the company’s growth prospects. The potential Nasdaq up-listing and anticipated positive shifts in the crypto market further support the Buy rating, as these factors could drive significant value for shareholders.
In another report released on March 28, Benchmark Co. also maintained a Buy rating on the stock with a C$41.00 price target.