Alight Stock Rating Update: Wedbush Lowers Price Target to $7.00 Amid Downward Adjustment in Expectations

Wedbush analyst Daniel Ives has maintained an "Outperform" rating for Alight (ALIT) but lowered the price target from $9.00 to $7.00, a 22.22% decrease. This reflects a downward adjustment in price expectations while maintaining optimism on Alight's potential. The average target price for Alight Inc is $8.25 with a high estimate of $11.00 and a low estimate of $6.00, indicating an upside of 95.27% from the current price of $4.23.

Wedbush analyst Daniel Ives has maintained an "Outperform" rating for Alight Inc. (ALIT) but lowered the price target from $9.00 to $7.00, marking a 22.22% decrease. This adjustment reflects a downward revision in price expectations while maintaining optimism on Alight's potential. The average target price for Alight Inc. is $8.25, with a high estimate of $11.00 and a low estimate of $6.00, indicating an upside of 95.27% from the current price of $4.23 [1].

Alight Inc., a technology-enabled services company, specializes in human capital management solutions, including employee benefits administration. The company has been navigating a challenging macroeconomic environment, as evidenced by its Q2 2025 earnings report. While revenue declined by 1.9% to $528 million, the company achieved margin expansion to 38.8% adjusted gross profit through cost discipline and operational efficiency [2].

A notable challenge for Alight Inc. is the $983 million non-cash goodwill impairment charge from its Health Solutions unit, which contributed to a $1.07 billion net loss. This charge has raised concerns about the long-term viability of the segment amid macroeconomic pressures. The company has also revised its 2025 revenue guidance to reflect a 4-6% contraction due to delayed deal closures [2].

Despite these challenges, Alight Inc. has taken strategic measures to bolster its position. The company has entered into a partnership with Goldman Sachs Asset Management to enhance its Wealth Solutions offerings via the Alight Worklife® platform, aiming to diversify its revenue streams. Additionally, Alight is focusing on automation, artificial intelligence, and innovation to drive efficiency and client value [2].

Investors are advised to consider these updates as they evaluate their positions in Alight Inc. (ALIT). The company's margin resilience, cost discipline, and strategic pivots suggest a roadmap for long-term resilience. However, the path to recovery is not without risks, and investors should adopt a cautious, long-term perspective, prioritizing Alight's operational improvements and strategic execution over short-term volatility.

References:
[1] https://www.gurufocus.com/news/3041014/alight-alit-stock-rating-update-wedbush-lowers-price-target-to-700-alit-stock-news
[2] https://www.ainvest.com/news/alight-q2-earnings-reveal-strategic-adjustments-revenue-decline-revised-guidance-2508/