On December 17th, BMO Capital Markets hosted a fireside chat with Michael Novogratz and Chris Ferraro, whom are the CEO and CIO of Galaxy Digital Holdings Ltd. (TSX: GLXY), respectively. In their note following the fireside chat, they reiterate their C$44 12-month price target and outperform rating on the stock. BMO believes that Galaxy has now achieved “critical mass” within its platform and expects the company to see attractive growth into 2022.
Galaxy only has 3 analysts covering their stock with an average 12-month price target of C$45.67, or a 97% upside to the current stock price. Out of the 3 analysts, 1 has a strong buy rating, 1 has a buy rating and the last analyst has a hold rating on the stock. The highest 12-month price target sits at C$48 from BTIG while the lowest comes in at C$44 from BMO Capital Markets.
Firstly, BMO says that 2021 was an important year for the industry as a whole and says that it “reflected a shift in sentiment for consumers, investors, and regulators.” Some of the important developments BMO cites in the note include Bitcoin as an inflation hedge, as well as NFT’s, the Metaverse, Web3, and DeFi.
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BMO believes that 2022 will be a great year as they expect Galaxy will be a beneficiary of increased institutional fund flow. They note that the CIO and CEO believe that layer 1 cryptocurrencies like Ethereum and Solana are to outperform Bitcoin.
Lastly, Galaxy’s management signaled to BMO that it will continue to invest in its operating divisions which will include new product development in trading, a new active fund for asset managers, an expansion in Bitcoin mining, and an overall increase in headcount.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
