Is Galaxy Digital (GLXY) A Bargain After The Bank Leumi Digital Asset Deal?
Galaxy Digital (GLXY) is back in focus after Bank Leumi in Israel selected the company’s GalaxyOne Institutional and custody platforms to power a new digital asset trading service for its retail and mobile customers.
See our latest analysis for Galaxy Digital.
Galaxy Digital’s partnership news arrives after a mixed share price pattern, with the stock down 22.89% over the past 90 days and 7.72% year to date, yet supported by a very large 3 year total shareholder return that reflects substantial longer term gains and indicates that earlier investors have already seen significant value creation.
If this digital asset deal has your attention, it could be a good moment to explore other cryptocurrency and blockchain related plays using the Simply Wall St screener for 20 cryptocurrency and blockchain stocks.
Galaxy Digital shares have pulled back despite a very large 3 year return and a sizeable gap to analyst price targets. The next step is to assess where fair value might sit within that wide range of estimates.
Most Popular Narrative: 42.9% Undervalued
Galaxy Digital’s most followed narrative places fair value at $39.97, above the last close of $22.84, and anchors that gap on a long build out in AI ready infrastructure and digital asset services.
Advancements in real world asset tokenization and the convergence of onchain and offchain capital markets are creating new, durable revenue streams (e.g., staking, lending, tokenized asset management), which Galaxy is actively positioning for through innovation and platform development, supporting long term growth in recurring revenue and operating income.
Curious what sits behind that valuation gap? The narrative leans heavily on projected revenue compounding, a step change in profit margins, and a rich future earnings multiple. The fair value hinges on how those three moving parts interact over time.
Result: Fair Value of $39.97 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you also need to weigh Galaxy Digital’s heavy reliance on CoreWeave, as well as the high capital and financing demands of its Texas data center build out.
Find out about the key risks to this Galaxy Digital narrative.
Next Steps
With Galaxy Digital attracting both optimism and concern, it makes sense to quickly look at the full picture and reach your own conclusion using the 1 key reward and 3 important warning signs.
Looking for more Galaxy Digital style investment ideas?
If you like the thesis around Galaxy Digital, do not stop here. Use the tools available to stack your watchlist with other clear, data driven ideas before the next move.
- Target quality at a discount by scanning for companies that combine solid fundamentals with attractive prices using the 48 high quality undervalued stocks.
- Strengthen your income stream by checking out stocks that offer robust payout profiles through the 12 dividend fortresses.
- Reduce potential shocks in your portfolio by focusing on resilient companies with steadier risk profiles via the 75 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com