Citi lifts Galaxy and Gemini, downgrades Securitize as crypto fundamentals improve

Investing.com -- Citi said digital asset companies are entering earnings season with a considerably stronger backdrop than a few months ago, and made several rating changes across the sector in a note Tuesday.

The bank upgraded Galaxy Digital to Buy from Neutral, citing improving visibility in its AI and high-performance computing business, and raised its target to $28. It upgraded Gemini to Neutral on improving volumes and risk-reward, with a $4.75 target.

Citi downgraded Securitize to Neutral following recent share price gains, pointing to elevated expectations and lockup-related supply, while raising its target to $14.

Total crypto market capitalization rose from roughly $2.1 trillion to nearly $3 trillion during the third quarter, analyst Peter Christiansen noted, while ETF inflows turned positive after several quarters of outflows.

“Regulatory progress continues despite the failure of the CLARITY Act, with the SEC increasingly advancing market structure through existing authority,” he wrote.

Christiansen said investors are increasingly looking past crypto prices toward the infrastructure behind tokenization, stablecoins, custody and settlement.

“We believe investors are increasingly rewarding infrastructure businesses over simple crypto exposure,” he added.

Citi reiterated Coinbase at Buy and raised its target to $230 from $210, saying growth is increasingly driven by derivatives, prediction markets and stablecoins. It lifted its 2027 adjusted EBITDA forecast to about $2.9 billion.

Circle and Bullish remain the bank’s highest-conviction ideas. On Strategy, Citi kept a Buy rating and $240 target, with a pending MSCI consultation the key near-term catalyst.

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