Ralliant Initiated with Neutral Rating by Seaport Research

Seaport Research analyst Scott Graham initiated coverage of Ralliant (RAL) with a Neutral rating. Seaport favors the spin-off from parent Fortive (FTV), expecting improved sales and margin consistency long-term. However, the firm expects sales to decline and margins to remain weak in the near-term due to pressures at Tek, the largest division. Ralliant is viewed as fairly valued.

Seaport Research analyst Scott Graham has initiated coverage of Ralliant (RAL) with a Neutral rating. The analyst favors the spin-off from parent company Fortive (FTV), expecting improved sales and margin consistency long-term. However, the firm expects sales to decline and margins to remain weak in the near term due to pressures at Tek, the largest division. Ralliant is viewed as fairly valued [1].

The spin-off from Fortive is expected to enhance Ralliant's focus and create long-term value, according to Seaport Research. The analyst anticipates that Ralliant's sales will decline and margins will remain weak in the short term, particularly due to challenges within Tek. Despite these near-term headwinds, Seaport Research believes that the spin-off will ultimately benefit Ralliant's performance and valuation [1].

Ralliant's current valuation is considered appropriate given the circumstances, with Seaport Research noting that the company is fairly valued. The analyst expects that Ralliant's long-term prospects will be positively impacted by the spin-off and the narrowed focus on its core business areas [1].

References:
[1] https://www.tipranks.com/news/the-fly/ralliant-initiated-with-a-neutral-at-seaport-research-thefly-2