Morgan Stanley initiates Ralliant stock with Overweight rating, $55 price target

Published 02/09/2025, 09:24
Morgan Stanley initiates Ralliant stock with Overweight rating, $55 price target

Investing.com - Morgan Stanley initiated coverage on Ralliant Corp. (NYSE:RAL) with an Overweight rating and a price target of $55.00 on Tuesday. The company, with a market capitalization of $4.7 billion, is currently trading near its 52-week low of $40.97.

The investment bank views Ralliant , which produces precision instrumentation for the electrical and digital world, as a diversified industrial company with attractive secular exposure trading at historical lows. The company maintains healthy fundamentals with a 51% gross margin and EBITDA of $429 million in the last twelve months.

Morgan Stanley noted that Ralliant has experienced negative organic growth for six consecutive quarters, but believes the first half of 2025 represented the trough, with signs of cyclical momentum emerging into 2026.

The firm highlighted that Ralliant’s current valuation remains at historical lows despite indicators of improving business conditions.

Morgan Stanley’s analysis suggests that forward estimates for Ralliant provide room for positive revisions, supporting the Overweight rating despite recent performance challenges. For deeper insights into Ralliant’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Ralliant Corp reported its Q2 2025 earnings, surpassing analyst expectations with an adjusted earnings per share (EPS) of $0.67. The company achieved a revenue of $530 million, which exceeded forecasts despite representing a 6% decline compared to the previous year. Barclays has adjusted its price target for Ralliant Corp to $59 from $60, maintaining an Overweight rating on the stock. This adjustment follows the company’s earnings report, with Barclays citing higher costs than previously anticipated as the reason for the revision. These developments reflect recent activities surrounding the company. Analysts’ projections and evaluations continue to play a significant role in shaping investor perspectives on Ralliant Corp. The company’s financial performance and cost management remain focal points for stakeholders.

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