Galaxy Digital (GLXY) shares have slumped in recent months as the ongoing crypto winter weighs on digital asset markets. The stock has underperformed the broader market this year, dropping to $19.90 — down more than 57% from its highest point in October last year. Citigroup analysts, however, see the dip as a buying opportunity and have boosted their outlook on the shares, pointing to a potential jump of more 40% from current levels. Several other Wall Street firms are similarly bullish, setting up a clear gap between the Street's targets and the stock's recent trajectory.

Citi Analysts Upgrade Galaxy Digital Stock

Galaxy Digital operates at the intersection of the crypto and artificial intelligence (AI) industries, offering a broad set of solutions. The company owns a platform for institutional crypto trading, an asset management business that manages assets for institutions, and an investment bank that advises crypto companies on M&A and fundraising. It also provides crypto lending and staking solutions. Most recently, Galaxy has moved into the artificial intelligence industry and is building large data centers, counting CoreWeave as its biggest data center client. That mix of businesses means the company's results have tracked crypto market conditions, while its data center buildout ties part of its growth story to AI infrastructure demand.

In a note, Citigroup analyst Peter Christiansen said he expects the business to do relatively well and forecast that the stock will jump to $28, suggesting a 40% surge from the current level. The bullish outlook is based on the view that the crypto market has more room to go in the near term, as well as the company's position in tokenization — the practice of representing assets as digital tokens on a blockchain — and artificial intelligence.

The call is in line with Citigroup's broader view that Bitcoin and Ethereum, the two largest cryptocurrencies, have more room to go. In a recent report, Citi said Bitcoin would jump to $113,000 over the next 12 months, and it expects the price of ETH to climb to $3,028.

Citigroup also points to Galaxy's data center projects, known as Helios 1 and Helios 2. The company has already announced large clients for the facilities — CoreWeave has inked a deal worth about $30 billion with Galaxy — and Citi expects it to make more client announcements in the coming months, giving investors a concrete milestone to watch as the buildout progresses.

Analysts Remain Bullish on GLXY Stock

Other top analysts are also highly bullish on the GLXY share price. MarketBeat data shows that there are 14 analysts tracking the company, and 10 of them have a buy rating while 4 hold a more cautious view, reflecting a broadly positive stance across the Street. The average price target among analysts is $39, up 97% from the current level — a figure that represents analyst expectations rather than a guarantee of where shares will trade.

Individual targets run higher in some cases. Morgan Stanley has a target of $43, while BTIG analysts see the stock at $45, the highest target among the group. Rosenblatt and Piper Sandler have targets of $35 and $33, respectively.

Galaxy's most recent results showed the business remained under pressure because of the crypto winter. Revenue dropped 15% to $8.7 billion, while net income improved to $85 million. Looking ahead, analysts expect the upcoming results to show revenue down by 70% to $12.16 billion, with annual revenue falling by 37% to $52 billion — projections that would underscore the downturn's continued pull on the business.

Galaxy Digital Stock Price Technical Analysis

The daily chart, however, tells a more cautious story than the Street's targets. It shows that GLXY stock has formed a double-top pattern at $27.54, with a neckline at $21.70 — its lowest level on September 16. This pattern often leads to a strong sell-off. Galaxy has also dropped below its 50-day and 200-day moving averages, as well as the Major S/R pivot point of the Murrey Math Lines, while the Average Directional Index (ADX), a trend-strength indicator, has risen, indicating more downside for the stock.

Taken together, these technicals suggest the stock has more room to fall, potentially to $15. Further out, however, the setup points to a potential rebound toward the Strong Pivot Reverse level of the Murrey Math Lines at $31.25.

Source: The Market Periodical