Key Insights
- Morgan Stanley initiates coverage on Galaxy Digital (GLXY) with an “overweight” rating and a $42 price target.
- Analyst interest is growing, with 13 firms now tracking the company, up from just four three years ago.
- Expansion plans include a 3.5-gigawatt build-out by 2030 and potential REIT conversion for added value.
Morgan Stanley has initiated research coverage on Galaxy Digital (GLXY) with an “overweight” rating and a $42 price target.
The company made an announcement earlier this month. It drew increased analyst attention to its expanding digital asset and data center operations.
Morgan Stanley Begins Coverage on Galaxy Digital
Morgan Stanley initiated coverage on Galaxy Digital with an overweight rating. It set a price target of $42 for the stock. This move adds the bank to the list of 13 other analysts now following the company.
Out of these, 12 have given GLXY a buy or overweight rating. Jonathan Goldowsky leads investor relations at Galaxy Digital. He said only four analysts were tracking the company when he joined 3.5 years ago.
The rise in coverage shows a broader interest from major institutions as Galaxy Digital continues to grow across its business lines. In a post on X, it was stated that Morgan Stanley used a sum-of-the-parts valuation to assess the company.
The bank valued Galaxy Digital’s crypto assets segment at $7.6 per share. It was based on a 2027 gross profit estimate of $419 million. The Helios I–III projects, which have an 800-megawatt lease with CoreWeave, were valued at $13 per share.
Helios IV and IV+ were given a value of $22.7 per share, reflecting their 2.7-gigawatt expansion plan. Still, the model assumes a 3.5-gigawatt build-out by 2030. It also estimates a 16.6% unlevered internal rate of return.
It expects to generate $1.8 million in revenue per megawatt. Long-term computing leases yield EBITDA margins of 90%. Morgan Stanley said these figures could indicate a strong long-term business model if the results match expectations.
Focus on Expansion and Long-Term Growth
Morgan Stanley’s report highlighted Galaxy Digital’s continued investment in infrastructure. Furthermore, the Helios projects show how the firm is expanding its high-performance computing capacity.
These developments support its broader goal of serving the growing demand for digital assets and blockchain-based data processing. The report also mentioned that Galaxy Digital might consider a REIT conversion in the future.
This change could allow it to access new financing options, increase leverage, or attract interest from real estate investment firms. Such a move could create additional value if the company decides to pursue it.
Galaxy Digital has been expanding its operations in both digital asset management and infrastructure. The company’s combined approach aims to strengthen its role in the evolving digital economy.
More importantly, the growing attention from analysts shows that the market is taking notice of this ambitious direction.
Institutional Confidence and Strategic Expansion Drive Galaxy Digital’s Growth Trajectory
Galaxy Digital’s shares were trading around $30.79 on the NASDAQ following the news, down 2.07% for the day.
The company has a market capitalization of about $11.88 billion. Its stock has moved between $17.40 and $45.92 over the past year.
The new coverage from Morgan Stanley comes six months after the bank helped manage Galaxy Digital’s $680 million secondary offering.
A major financial institution has joined the list of analysts covering the stock. This strengthens the company’s growing presence in the market.
Goldowsky noted that more analysts are now covering Galaxy Digital. He believes this reflects a deeper understanding of the company’s business model and progress.
With more attention from large financial firms, the company could gain a stronger position among institutional investors. Still, Galaxy Digital continues to focus on expanding its digital infrastructure while maintaining its presence in the digital asset space.
The overweight rating and $42 price target suggest that Morgan Stanley expects steady growth in the years ahead. Galaxy Digital is launching new projects and expanding its market reach. Investors expect these moves to boost the company’s per-share returns.
This could further attract more investors who are interested in both digital finance and high-performance computing. The company’s current path demonstrates how traditional finance and digital technology are converging in today’s market.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
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