Canaccord Genuity started research coverage on Galaxy Digital (BRPHF) with a Buy rating and a one-year price target of C$17, implying an upside of more than 28% from the last closing price.
Having exposure both in its balance sheet and operations to the cryptocurrency ecosystem, GLXY “represents one of the most diversified ways to play digital assets,” analysts at Canaccord said in a note.
“Overall, we view Galaxy as well positioned against what we believe should be an improving landscape for digital assets in 2024,” they added.
Canaccord sees Galaxy’s institutional trading business as a “share gainer,” citing several positive catalysts.
In particular, this segment should capitalize on the anticipated widespread launch of Galaxy One, its unique crypto prime brokerage platform, along with the approval of various spot BTC ETFs in the U.S. and the forthcoming Bitcoin halving, which are expected to push spot prices upwards.
“This, in turn, helps the Galaxy trading business, given potentially higher volatility and overall dollar-weighted trading volumes,” the analysts wrote.
They also pointed out that GLXY’s balance sheet is highly influenced by underlying cryptocurrency spot prices, which are adjusted on a quarterly basis.
“As such, we would expect to see a Q4 book value for Galaxy to be appreciably higher than what it was exiting Q3.”