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

Core Insights - Ralliant Corporation is highlighted as a promising IPO tech stock, with Oppenheimer initiating coverage with an Outperform rating and a price target of $55, citing the company's strengths in Sensors and Safety Systems as key growth drivers [1][3] Financial Performance - In Q2 2025, Ralliant reported revenue of $503 million, reflecting a 6% year-over-year decline but a 4% sequential increase [2] - The adjusted EBITDA margin was 19.8%, down 5.3% year-over-year, attributed to lower volumes in the Test & Measurement segment, tariffs, and increased costs associated with being a public company [2] Segment Analysis - The Sensors & Safety Systems segment generated revenue of $311 million, accounting for over 60% of total revenue, with a 1% year-over-year increase and a 6% sequential increase, driven by demand in utilities and defense & space markets [3] - Conversely, the Test & Measurement segment experienced a 15% year-over-year revenue decline, primarily due to weaknesses in the EV and battery markets, particularly in Western Europe [3] Company Overview - Ralliant Corporation designs, develops, manufactures, sells, and services precision instruments and engineered products globally, operating through two segments: Test & Measurement and Sensors & Safety Systems [4]