Alight Price Target Lowered to $7 by DA Davidson

DA Davidson lowered Alight's (ALIT) price target to $7 from $10 and kept a Buy rating. The firm noted Alight's Q2 results exceeded forecasts, but management reduced 2025 revenue guidance due to delayed deals and lower non-recurring project revenue. DA Davidson trimmed 2025-2027 forecasts, viewing 2025 as a transition year to rebuild a track record of solid quarterly results.

Alight Inc. (ALIT), a technology-enabled services company, has seen its price target decreased by DA Davidson to $7 from $10, while maintaining a Buy rating. The firm noted that Alight's Q2 results exceeded forecasts, but management reduced 2025 revenue guidance due to delayed deals and lower non-recurring project revenue. DA Davidson trimmed 2025-2027 forecasts, viewing 2025 as a transition year to rebuild a track record of solid quarterly results [1].

Alight's Q2 results, released on August 5, 2025, showed earnings per share (EPS) and revenues exceeding analyst expectations. However, the company's management reduced its 2025 revenue guidance to $2.31 billion from the previously projected $2.45 billion. This adjustment was attributed to delayed deals and lower non-recurring project revenue, which impacted the company's financial outlook [1].

DA Davidson's analysts believe that 2025 will be a transition year for Alight as the company works to rebuild a track record of solid quarterly results. The firm expects the company to return to growth in 2026 and 2027, with revenue projections of $2.64 billion and $2.96 billion, respectively [1].

Alight's stock has been volatile in recent months, with a 33.17% decrease in the past month and a 42.17% decrease over the past year. The company's share price has been trading at a discount to its estimated fair value, currently at 73.2% below the fair value estimate [1].

Despite the recent decrease in the price target, DA Davidson maintains a Buy rating for Alight, indicating that the firm believes the company's long-term prospects remain favorable. The analysts suggest that investors should focus on Alight's transition year and its potential for solid quarterly results in the future [1].

In conclusion, Alight Inc. (ALIT) has seen its price target decreased by DA Davidson to $7, while maintaining a Buy rating. The firm's Q2 results exceeded expectations, but revenue guidance for 2025 was reduced due to delayed deals and lower non-recurring project revenue. DA Davidson expects Alight to return to growth in 2026 and 2027, with the company's long-term prospects remaining favorable.

References:
[1] https://simplywall.st/stocks/us/commercial-services/nyse-alit/alight