H.C. Wainwright has reduced its 12-month price objective for Galaxy Digital (NASDAQ:GLXY) to $40.00 from $45.00, while leaving its recommendation unchanged at Buy. The broker's revised valuation applies an approximately 5.5x price-to-book multiple to a recalculated 2026 year-end book value estimate of $2.7 billion.
Galaxy's shares were trading at $21.98 at the time of the note, a level that reflects substantial upside relative to the new target but also follows a sharp pullback in the share price - a 30.7% decline over the prior week. On a market-wide basis, the company carries a market capitalization of $8.59 billion and reports a P/E ratio of 44.48, figures H.C. Wainwright notes as indicative of a premium valuation.
The firm said the premium implicit in its valuation is justified relative to public crypto exchanges and blockchain infrastructure peers because of Galaxy Digital's diversified set of businesses and its atypical exposure to high-performance computing and AI hosting services. H.C. Wainwright framed that mix of businesses as a differentiator in comparing Galaxy to more narrowly focused industry participants.
At the same time, the research note flagged multiple risk vectors that could influence the sustainability of the Buy rating and the price target. Those risks include a dynamic regulatory environment, the notable volatility associated with digital assets, heightened competitive pressures, and technology-related vulnerabilities - each of which the firm said could affect the company's outlook.
Mike Colonnese, the H.C. Wainwright analyst covering Galaxy Digital, sustained the Buy rating despite trimming the target. That continuation of a positive recommendation suggests the firm retains confidence in the company's strategic positioning even as it adjusted near-term valuation assumptions.
Separately, Galaxy Digital disclosed its Q4 2025 results and reported a full-year GAAP net loss of $241 million, equal to $0.61 per share. Management emphasized progress toward digital asset profitability and cited recent strategic acquisitions as contributing to longer-term growth potential. Those operational updates were presented against a backdrop of broader market headwinds that have pressured investor sentiment.
In additional analyst coverage, Citizens reaffirmed a Market Outperform rating on Galaxy Digital, keeping its price target at $60.00. Citizens said it views the company as well-positioned to participate across several possible industry developments, including increased on-chain asset migration and trading of tokenized securities, and noted Galaxy's efforts to develop infrastructure to support those potential transitions.
Taken together, the analyst actions and corporate disclosures provide a snapshot of how market participants are valuing Galaxy Digital's hybrid business model - one that spans trading, asset management, and infrastructure services - while also acknowledging the operational and market risks that accompany exposure to digital assets and advanced hosting services.