RBC Capital on Friday lowered its 12-month price target for Ralliant Corp. (NYSE: RAL) to $41.00 from $52.00, while leaving its analyst rating unchanged. The new target sits at the low end of the range of analyst valuations, which span from $41 to $65, according to InvestingPro data.
The broker's move follows Ralliant's issuance of 2026 guidance that came in roughly 15% below consensus expectations. RBC attributed the shortfall to unanticipated segment-level operating costs that emerged after the company's spin-off, rather than to demand weakness or losses in market share. InvestingPro data cited in RBC's note indicates analysts expect Ralliant's net income to decline this year, although projections still show the company returning to profitability in 2026.
RBC described the situation as a "communication/forecasting gaffe," warning that Ralliant "could be in the penalty box until it strings together some as-expected quarters." The firm also highlighted a $1.4 billion impairment/write-off tied to the EA business, observing that the charge could limit Ralliant's capacity to pursue mergers and acquisitions in the near to medium term.
Market reaction was swift. Shares of Ralliant tumbled about 32%, moving the stock close to its 52-week low of $37.27. At the time of the note, the share price was quoted at $38.75, down from the prior close of $56.28. RBC noted that the sharp drop in equity value might "raise prospects for a takeout," but also pointed out that acquisitions of this type remain uncommon before the customary two-year anniversary of a tax-free spin.
On valuation, InvestingPro's Fair Value assessment suggests Ralliant appears fairly valued at current market levels.
Recent corporate and operating updates
Ralliant declared a quarterly cash dividend of $0.05 per share, payable on March 23, 2026, to shareholders of record as of March 9, 2026. The company also amended its credit agreement with PNC Bank and other lenders, trimming the Term SOFR interest rate on its revolving credit facility and term loans by 0.10%.
Operationally, Ralliant reported third-quarter results that beat expectations. According to a note from BofA Securities, third-quarter revenue exceeded consensus by $8 million, while adjusted EBITDA outperformed Street estimates by $6 million.
Analyst activity and market positioning
Despite RBC's lowered target, other firms have taken more upbeat stances recently. Oppenheimer raised its price target to $60, citing the stronger third-quarter performance and management's constructive view of long-term growth. Truist Securities initiated coverage with a Buy rating and a $62 price target. BofA Securities increased its target to $50 but maintained an Underperform rating.
Ralliant remains a newly independent company following its spin from FTV and is generating roughly $2 billion in annual sales as it establishes its standalone operations.
What this means for investors
The analyst action and the company's guidance highlight a mix of near-term execution challenges and longer-term profitability expectations. The impairment charge and revised forecast underpin near-term uncertainty, while recent operating beats and multiple analyst price targets underscore divergent views across the research community.