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Investing.com - TD Cowen initiated coverage on Ralliant Corp. (NYSE:RAL), currently trading at $47.36 with a market capitalization of $5.35 billion, on Tuesday with a Buy rating and a price target of $64.00. According to InvestingPro, the stock’s RSI indicates overbought territory.
The research firm noted that Ralliant’s management successfully created a cyclical vehicle, though it acknowledged some market skepticism about the strategic reasoning behind this approach.
TD Cowen highlighted that Ralliant’s Test & Measurement (T&M) margins are currently more than 1500 basis points below their 2023 levels, suggesting significant room for improvement.
The firm pointed to early signs of recovery, noting that orders have "already beginning to grow again," making this an opportune time to invest while the company is trading at a multiple on trough results.
The $64 price target still implies a discount to Ralliant’s peers, with TD Cowen indicating it will continue to evaluate the company’s standalone execution.
In other recent news, Ralliant Corp. has been the subject of several analyst evaluations following its spin-off from Fortive Corp (NYSE:FTV). Barclays (LON:BARC) initiated coverage on Ralliant with an Overweight rating, noting the company’s cyclical trough and potential for a sharp earnings upturn by 2026. They highlighted that Ralliant’s recent sales declines may have reached their peak, suggesting a recovery may be on the horizon. Meanwhile, Seaport Global Securities gave Ralliant a Neutral rating, citing mixed prospects due to near-term challenges such as sales declines and weak margins, especially in its largest division, Tek. BofA Securities rated Ralliant with an Underperform rating, pointing to valuation concerns but acknowledged sequential improvement in the Test & Measurement segment starting in the second quarter of 2025. The firm also noted that Ralliant’s aerospace and defense components business benefits from growing global defense spending. Following the spin-off, Fortive Corp. completed the distribution of Ralliant shares to its shareholders, marking a significant restructuring for both companies. Olumide Soroye has taken over as President and CEO of Ralliant, succeeding James Lico. Fortive warned of revenue pressures due to tariff-related pricing and demand uncertainties, estimating its second quarter revenue to be flat to slightly down.
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