Alight has been certified as a Great Place to Work for the seventh consecutive year. The recognition is based on employee feedback, highlighting the company's strengths in welcoming new colleagues, giving meaningful responsibilities, and trusting employees to do their jobs. 75% of Alight colleagues say the company is a great place to work, 18 percentage points higher than the average U.S. company. The certification reflects Alight's ongoing efforts to build a workplace where people feel supported, valued, and empowered to thrive.
Swiss banking giant UBS Group AG has lowered its price target for Alight Inc. (NYSE: ALIT) to $6.5, while maintaining a "buy" rating on the stock. The brokerage's analysts cited a more conservative outlook on the company's future earnings growth and operational challenges as reasons for the adjustment [1].
The new price target represents a 16.5% reduction from the previous target of $7.75, set in April 2025. Alight Inc., a leading provider of employee benefits and human resources outsourcing services, has faced increased volatility and uncertainty in the broader market environment. UBS Group AG's analysts believe that the company's recent performance and market conditions warrant a more cautious approach.
In addition to the price target adjustment, UBS Group AG has also lowered its earnings per share (EPS) forecast for Alight Inc. for the fiscal year ending in December 2025. The new EPS estimate is $1.15, down from the previous estimate of $1.30. The analysts cited concerns over higher-than-expected costs and potential headwinds from regulatory changes as factors contributing to the downward revision.
Despite the downward revision, UBS Group AG's analysts remain optimistic about Alight Inc.'s long-term prospects and maintain their "buy" rating on the stock. They believe that the company's strong market position, experienced management team, and commitment to innovation will continue to drive growth and profitability in the coming years.
Alight Inc. reported mixed performance in its second quarter of 2025, with revenue declining 1.9% year-over-year (YoY) to $528 million, primarily due to reduced project revenue and lower net commercial activity. The company's net loss increased significantly to $1,073 million, largely driven by a $983 million non-cash goodwill impairment charge related to its Health Solutions unit. Despite these challenges, adjusted EBITDA improved to $127 million from $105 million in the prior year [2].
Operational resilience and cost management were evident in Alight's Q2 results. Gross profit increased to $176 million, representing a 33.3% margin, up from $167 million and a 31.0% margin in the prior year. Adjusted gross profit rose to $205 million, a 38.8% margin, reflecting disciplined cost management and operational efficiency. Selling, general, and administrative (SG&A) expenses improved by $16 million, aided by reduced professional fees and lower compensation costs.
Alight's strategic initiatives offer a counterbalance to these challenges. The partnership with Goldman Sachs Asset Management aims to diversify revenue streams by leveraging expertise in retirement and wealth management. This move aligns with Alight's broader focus on automation, artificial intelligence, and innovation to drive efficiency and client value.
Investors should closely monitor Alight Inc.'s financial performance and the broader market conditions to assess the potential impact of UBS Group AG's revised price target and EPS forecast. As always, it is essential to conduct thorough due diligence and consider multiple perspectives before making investment decisions.
References:
[1] https://www.ainvest.com/news/ubs-lowers-price-target-6-5-maintains-buy-rating-alight-2508/
[2] https://www.ainvest.com/news/alight-reports-q2-2025-revenue-528mln-net-loss-1-073mln-cash-goodwill-impairment-2508/
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