Alight’s analyst price target has been reduced modestly from approximately $7.57 to $7.21 per share. This adjustment reflects analysts’ expectations for slower near-term revenue growth and a recalibrated outlook as the company focuses on margin improvements amid delayed deal closures.
Analyst Commentary
Recent updates from Street analysts offer a balanced perspective on Alight’s near-term prospects, focusing on both the company's execution and its market position.
Bullish Takeaways
- Analysts note that Alight’s backlog continues to grow, which indicates that underlying demand for its services remains robust despite near-term revenue timing issues.
- There is confidence in management’s ability to drive margin expansion as the company prioritizes operational efficiencies and cost controls.
- Despite revised price targets, bullish analysts have maintained Buy ratings. This suggests continued belief in Alight’s long-term valuation upside.
- Recent quarterly results exceeded internal forecasts for both revenue and adjusted EBITDA. This demonstrates resilience in the company’s core business execution.
Bearish Takeaways
- Bearish analysts cite delayed deal closings, which have led to lower near-term growth projections and prompted downward revisions to revenue guidance for 2025.
- There are concerns regarding continued softness in non-recurring project revenue, which further impacts growth acceleration expectations.
- Lowered valuation multiples reflect a more cautious stance as investors await evidence of improved execution and consistent quarterly performance.
- 2025 is viewed as a transition year, with the need for Alight to reset expectations and rebuild its track record of delivering solid results.
What's in the News
- Alight announced the addition of Sword Health, an AI-driven clinical care platform, to its Partner Network. This expands offerings in musculoskeletal, pelvic, and behavioral health solutions through advanced technology and outcome-based pricing (Key Developments).
- The company released the second major update of Alight Worklife for 2025. This update introduces over 30 new features and enhancements across health, wealth, wellbeing, and absence management, including improved AI integrations and digital wallet support (Key Developments).
- Alight reported a goodwill impairment charge of $983 million for the second quarter ended June 30, 2025 (Key Developments).
- New financial guidance for 2025 sets expected revenue between $2,282 million and $2,329 million (Key Developments).
- Alight completed the repurchase of more than 36 million shares since August 2022, representing nearly 7% of shares outstanding as of June 30, 2025 (Key Developments).
Valuation Changes
- The consensus analyst price target has decreased modestly from $7.57 to $7.21 per share.
- The discount rate has risen slightly from 9.35% to 9.39%.
- Revenue growth expectations have fallen from 2.90% to 2.00%.
- The net profit margin forecast has increased from 7.91% to 8.12%.
- The future P/E (Price/Earnings) ratio has declined from 25.75x to 24.56x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.