10:43 AM EDT, 09/10/2025 (MT Newswires) -- Ralliant's ( RAL ) higher-margin Sensors and Safety Systems business represents an attractive opportunity tied to grid hardening, rising power demand, and larger aerospace and defense budgets, Oppenheimer said in a Wednesday note, calling the company an "interesting investment opportunity."

Meanwhile, its Test and Measurement unit has recently stabilized and is expected to return to year-on-year growth in 2026, the firm said.

Oppenheimer also projects Ralliant's ( RAL ) normalized organic revenues will grow about 3.2%, with margins recovering "meaningfully" as the Test and Measurement unit returns to growth.

Ralliant's ( RAL ) low capital spending supports free cash flow of about $303 million in 2025 and $315 million in 2026, with more than $1 billion expected cumulatively through 2028, which it plans to deploy toward growth, shareholder returns, and small acquisitions, according to the note.

The firm initiated coverage with an outperform rating and a $55 price target.

Shares of Ralliant ( RAL ) were up 2.5% in recent trading.

Price: 43.33, Change: +1.07, Percent Change: +2.52