Key insights
- Morgan Stanley significantly raised its price target for Ralliant Corp. to $85 from $68, maintaining an Overweight rating. This upgrade follows a roadshow where the firm gained conviction in Ralliant's business turnaround, citing cyclical exposure, secular opportunities, and operational improvements. The analyst anticipates sustained high-single-digit organic growth through 2027, suggesting potential for further positive revisions and a stock re-rating. Ralliant's recent Q1 results, DoD funding, and share repurchase program also contribute to a positive outlook.
Investing.com - Morgan Stanley raised its price target on Ralliant Corp. (NYSE:RAL) to $85 from $68 while maintaining an Overweight rating on the shares.
The firm increased its conviction on the company following a non-deal roadshow. Morgan Stanley sees an organic pathway to sustained high-single-digit growth into 2027.
The analyst stated, "We exit RAL NDR w/ increased conviction that the business is turning " including cyclical exposure, the secular opportunity & company operations. We see organic pathway to sustained HSD into 2027, signaling cont™d positive revisions + re-rating potential."
The raised price target reflects Morgan Stanley’s view on the company’s cyclical exposure and secular opportunity. The firm also cited improvements in company operations.
Morgan Stanley expects continued positive revisions and potential for re-rating based on the growth outlook.
In other recent news, Ralliant Corp announced its first-quarter 2026 results, surpassing operating estimates by 7 cents or 11% and achieving approximately 9% organic sales growth. The company’s book-to-bill ratio was reported at 1.1 times. Additionally, Ralliant’s Pacific Scientific Energetics Materials Company unit received $27.3 million in funding from the Department of Defense to enhance production capacity for solid rocket motor programs. In response to these developments, RBC Capital raised its price target for Ralliant to $64, maintaining a Sector Perform rating, while Morgan Stanley increased its target to $68 with an Overweight rating. TD Cowen also adjusted its price target upward to $70, continuing to recommend a Buy rating. Furthermore, Ralliant initiated a $100 million accelerated share repurchase program, which is expected to be completed by the end of the second quarter of 2026. These recent developments reflect the company’s strategic initiatives and analyst confidence in its growth trajectory.
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