Chardan analyst Bill Papanastasiou initiates coverage on Galaxy Digital (NASDAQ: GLXY) with a Buy rating and a price target of $35.00.

The analyst comments: "In our view, Galaxy offers investors broad exposure to the emerging digital assets ecosystem through a diversified offering of financial services reinforced by long-standing thought leadership in identifying emerging and/or compelling opportunities. The company has also developed a robust AI/HPC data center infrastructure business that is set to generate stable, predictable cash flows to bolster the top line in the near-term and could become a leading revenue stream, while providing downside protection from the volatility and lumpy business activity from the digital assets business. With 830 MW available to be contracted and a robust pipeline to +3.4GW, we think the stock is sitting at an attractive entry point.

Our valuation relies on a sum-of-the-parts valuation methodology to account for the diversified structure of the business across Global Markets, Asset Management & Infrastructure Solutions, and Data Center Infrastructure segments. We performed a discounted cash flow analysis on the contracted and approved capacity (under the assumption of similar lease economics/terms) and value the remaining operations on a relative basis with a haircut multiple to industry leaders within across the various verticals (trading, investment banking, asset management). We have also marked the net digital assets and investments accounts to fair value. We derive a $35.00/share target price."

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Shares of Galaxy Digital closed at $26.01 yesterday.