Galaxy Digital: BMO Gives Price Target Slight Positive Bump After Strong Q3 Results

On November 15th, Galaxy Digital Holdings Ltd. (TSX: GLXY) reported its third quarter financial results. The company reported total income of $216.53 million and expenses of $151.24 million. Of that $216 million, $149.7 million came from realized gains on digital assets.

Below those line items, the company saw a $379.49 million and $144.29 million unrealized gain on digital assets and investments respectively. bringing the net income to $532.9 million. The company boasts $275.8 million of cash on hand, around $2.1 billion of digital assets, and another $500 million in digital assets receivables.

Galaxy currently only has 3 analysts covering the stock with the average 12-month price target being C$45.67, or a 30% upside to the current 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 company. The street high sits at C$48 from BTIG while the lowest comes in at C$44.

In BMO’s third quarter review, they reiterate their outperform rating and raise their 12-month price target to C$44 from C$43. They say that this quarter shows accelerating momentum into the fourth quarter while the company pushed back their U.S listing and BitGo acquisition closing from the fourth quarter to the first quarter of 2022.

For the results, BMO says that the company beat their EPS and BVPS estimates of $1.12 and $5.43, as the company reported $1.48 and $5.81 respectively. This beat was attributed to the crypto market being up 35% this quarter, while they say that operating revenue came in lower due to “trading volumes recovered slower than crypto prices, and slower initial capacity ramp in bitcoin mining.”

BMO says that the company pushing its U.S listing back to the first quarter of 2022 is disappointing but not entirely surprising since the company has to convert its financials to U.S GAAP and “re-domestication” into the U.S. This is all happening while the company is completing its BitGo acquisition.

Lastly, BMO touches on Galaxy’s management, saying that institutional understanding of cryptocurrencies is a lot higher than investment levels. This is primarily due to the lack of regulatory clarity for the sector. BMO writes, “Galaxy expects an unprecedented spike in private investment to accelerate innovation and drive higher growth in 2022, notwithstanding the risk of a tax-driven correction in Q1.”

Below you can see BMO’s updated estimates.


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.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

First Majestic: BMO Cuts Target To $9.50

Last week First Majestic Silver Corp (TSX: FR) announced its second quarter production results. The...

Thursday, July 28, 2022, 04:46:00 PM

SSR Mining: Canaccord Reiterates Firm As Being A Top Pick

On August 4, SSR Mining (TSX: SSRM) reported its second quarter financial results. The company...

Monday, August 16, 2021, 11:34:00 AM

Xebec Adsorption: Canaccord Lifts Price Target To $6

On July 6th, Xebec Adsorption (TSX: XBC) announced a master service agreement with a leading...

Thursday, July 8, 2021, 03:27:00 PM

Else Nutrition: Canaccord Cuts Target To $2.00 After Financing

On June 22, Else Nutrition (TSX: BABY) announced that it raised $7.29 million by selling...

Monday, July 4, 2022, 04:33:00 PM

Lululemon: Q1 2021 Consensus Analyst Estimates

Lululemon (NASDAQ: LULU) will be reporting their first quarter financial results on June 3rd after...

Thursday, June 3, 2021, 02:02:00 PM