Citi initiates coverage on Ralliant stock with Neutral rating

Investing.com - Citi initiated coverage on Ralliant Corp. (NYSE:RAL), a $5.27 billion market cap company, with a Neutral rating and a $53.00 price target on Monday. According to InvestingPro data, the stock is currently trading at $46.64, near its 52-week low of $43.75.

The research firm cited Ralliant’s solid brands, product portfolio, secular growth drivers, established operating system, and healthy balance sheet as positive factors that could unlock value following its separation from FTV.

Citi based its $53 price target on a 19x P/E multiple applied to its 2026 EPS estimates for the company.

Despite long-term potential, Citi expressed caution about Ralliant’s exposure to cyclical end markets and ongoing macroeconomic uncertainty, which temper near-term enthusiasm for the stock.

The firm identified potential future tailwinds including demand improvement across cyclically softer end markets, margin expansion opportunities through volume leverage, and capital deployment options, though it noted these objectives may take longer to achieve in the current challenging environment.

In other recent news, several investment firms have initiated coverage on Ralliant Corp., highlighting different aspects of the company’s financial outlook. Barclays (LON:BARC) initiated coverage with an Overweight rating and a $60 price target, noting Ralliant’s potential for a sharp earnings upturn in 2026 following its spin-off from FTV. Cowen also initiated coverage with a Buy rating and set a $64 price target, citing early signs of recovery in the Test & Measurement segment. Meanwhile, BofA Securities gave Ralliant an Underperform rating with a $48 price target, expressing concerns over valuation despite noting benefits from increased global defense spending and investments in energy transition. Evercore ISI rated the stock as In Line, pointing out potential for organic sales and EBITDA growth, while also highlighting revenue headwinds in the Test & Measurement segment. Seaport Global Securities issued a Neutral rating, mentioning mixed prospects and near-term challenges, especially within the Tek division. These varying assessments reflect a complex picture of Ralliant’s current and future financial landscape.

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