Citi Upgrades Galaxy Digital Stock, Raises Price Target to $28

Citigroup has upgraded Galaxy Digital (GLXY) stock from Neutral to Buy, raising its price target from $26 to $28 as confidence grows in the company's artificial intelligence (AI) infrastructure business. The revised target represents a 7.69% increase and suggests approximately 40.9% upside from the stock's previous closing price of $19.87.

Citi analyst Peter Christiansen attributed the upgrade to stronger-than-expected economics at Galaxy Digital's Helios I data center and improving prospects for its expanding AI infrastructure operations.

Christiansen emphasized that Galaxy Digital's current valuation presents an appealing investment opportunity, stating, "Now, we think the risk/reward is attractive."

The analyst also identified a potential announcement involving a Helios II data center tenant within the next six months. Securing an additional tenant could strengthen revenue visibility and support the company's long-term growth strategy.

Despite Citi's bullish outlook, Galaxy Digital shares fell more than 2% during Tuesday morning trading as investors assessed the revised projections ahead of upcoming quarterly earnings.

Meanwhile, Citi adjusted its ratings and price targets for several other cryptocurrency-related stocks, including Coinbase, Gemini, and Securitize.

The bank increased its Coinbase (COIN) price target from $210 to $230 while maintaining a Buy rating. The updated forecast indicates approximately 27.5% upside from Coinbase's previous closing price of $180.39.

Citi maintained its favorable outlook on Coinbase, while Morgan Stanley recently raised its own price target but retained an Equal Weight rating.

Gemini (GEMI) also received an upgrade, with Citi changing its rating from Sell to Neutral and increasing its price target from $3.20 to $4.75. The new target suggests roughly 15.6% upside from the stock's previous close of $4.11.

Citi cited Gemini's recent share price decline and improved valuation as key factors behind the adjustment.

However, the bank downgraded Securitize (SECZ) from Buy to Neutral following recent trading activity, despite maintaining a positive long-term outlook on asset tokenization.

These revisions follow Citi's earlier decision to increase its Strategy (MSTR) price target from $136 to $240 as Bitcoin recovered above $86,000.

With third-quarter earnings approaching in October, investors will closely monitor Galaxy Digital's AI data center expansion, cryptocurrency trading performance, and institutional adoption of tokenized financial assets.