Ralliant Corporation (RAL) has received a new Buy rating, initiated by TD Cowen analyst, Joseph C Giordano.
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Joseph C Giordano has given his Buy rating due to a combination of factors that suggest a positive outlook for Ralliant Corporation. The management’s strategic decision to create a cyclical vehicle appears to be paying off, as evidenced by the growth in orders and the potential for improved margins. Despite some challenges, such as the underperformance of EA Electro and the timing of the deal, the company is positioned well with its diverse asset base, including strong performances expected from Qualitrol and PacSci.
Giordano’s analysis indicates that the T&M EBITDA margins, although currently lower, are expected to rebound, providing a reasonable upside. The $64 price target, based on a discounted valuation compared to peers, suggests that there is still significant potential for growth. This valuation takes into account the standalone execution of the company and the expected improvements in the market conditions, making the stock an attractive buy.
In another report released today, Barclays also initiated coverage with a Buy rating on the stock with a $60.00 price target.