Oppenheimer Initiates Coverage on Ralliant (RAL) with an Outperform Rating, $55 PT

Ralliant Corporation (NYSE:RAL) is one of the best IPO tech stocks to buy now. On September 10, Oppenheimer initiated coverage of Ralliant with an Outperform rating and $55 price target. The firm believes that the company’s Sensors and Safety Systems business offers an attractive play on grid hardening, higher power needs, and larger aerospace and defense budgets.

In Q2 2025, Ralliant reported revenue of $503 million, which was a 6% decrease year-over-year, but a 4% increase sequentially. The company’s adjusted EBITDA margin was 19.8%, a decline of 5.3% year-over-year, primarily due to lower volumes in the Test & Measurement segment, tariffs, and increased public company costs.

The company’s performance was mixed across its 2 segments. The Sensors & Safety Systems segment showed strength, with revenue of $311 million (over 60% of total revenue), which was an increase of 1% year-over-year and 6% sequentially. This was driven by continued secular demand in the utilities, and defense & space markets. The Test & Measurement segment saw a 15% decline in revenue year-over-year, largely due to weakness in the EV and battery markets, especially in Western Europe.

Ralliant Corporation (NYSE:RAL) designs, develops, manufactures, sells, and services precision instruments and engineered products internationally. It has 2 segments: Test & Measurement, and Sensors & Safety Systems.

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Disclosure: None. This article is originally published at Insider Monkey.