Street Calls of the Week
Investing.com - Oppenheimer initiated coverage on Ralliant Corp. (NYSE:RAL) with an Outperform rating and a $55.00 price target on Wednesday, representing significant upside potential from the current price of $42.26. According to InvestingPro data, analyst targets for the $4.76 billion market cap company range from $47 to $64.
The research firm views the company, which was spun off from Fortive, as an "interesting investment opportunity" with its larger Sensors and Safety Systems business offering exposure to grid hardening, increased power needs, and expanding aerospace and defense budgets. The company maintains a healthy financial position with a GOOD overall health score and trades at 17.32x earnings.
Ralliant’s smaller Test and Measurement unit has recently stabilized and is projected to see high-single-digit sequential revenue growth in the third quarter of 2025, according to Oppenheimer’s analysis.
The firm expects Ralliant’s Test and Measurement segment to return to year-over-year growth in 2026 as end markets including automotive, batteries, and consumer electronics recover and comparisons ease following a 19% year-over-year sales decline in the first half of 2025.
Oppenheimer projects normalized organic revenue growth of approximately 3% for Ralliant , supported by tailwinds in utilities and aerospace & defense sectors, while margins could recover significantly from their expected 500 basis point year-over-year decline to 20.6% in 2025.
In other recent news, Ralliant Corp reported its second-quarter 2025 earnings, with an adjusted earnings per share (EPS) of $0.67, surpassing analyst expectations. The company achieved a revenue of $530 million, which, although representing a 6% decline from the previous year, exceeded forecasts. Morgan Stanley initiated coverage on Ralliant with an Overweight rating and set a price target of $55, highlighting the company’s diversified industrial position. Meanwhile, Barclays adjusted its price target on Ralliant to $59 from $60, maintaining an Overweight rating despite noting higher costs than previously guided. These developments reflect differing analyst perspectives on Ralliant’s financial health and future prospects. Investors are closely watching these updates as they assess the company’s performance and strategic direction.
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