Canaccord Genuity initiated coverage of Galaxy Digital (BRPHF) with a Buy recommendation and set a one-year price target of CA$17, suggesting a potential upside of over 28% from the share price. previous closing.
Galaxy Digital, with investments and operations in the cryptocurrency sector, is “one of the most comprehensive options for investing in digital currencies,” according to Canaccord analysts in their report.
“We consider Galaxy Digital to be in a strong position in anticipation of favorable developments in the digital currency market in 2024,” they said.
Canaccord sees Galaxy’s institutional trading division as likely to gain market share, identifying several growth drivers.
This division is expected to benefit from the widespread introduction of Galaxy One, the company’s specialized cryptocurrency prime brokerage service, as well as the approval of several direct Bitcoin exchange-traded funds in the United States and the upcoming halving of the Bitcoin reward. These events are likely to lead to an increase in direct bitcoin prices.
“This is expected to benefit Galaxy’s trading operations due to potentially larger price fluctuations and increased overall trading volume measured in dollars,” the analysts note.
They also pointed out that the value of Galaxy assets is strongly affected by direct cryptocurrency market prices, which are recalculated every three months.
“Therefore, we expect Galaxy’s book value at the end of the fourth quarter to be significantly higher than at the end of the third quarter.”
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