Alight (ALIT) Stock Forecast & Price Target

Alight Inc. has demonstrated solid performance with a 7.8% year-over-year increase in BPaaS revenue, which accounted for approximately 24% of total revenue, indicating a growing demand for its human capital management solutions. The company is expected to improve its core business growth as it increasingly focuses on bundled deals, which will likely enhance EBITDA and EPS growth over the coming years. Alight's healthy margins, strong cash flow, and high client retention rates contribute to a stable revenue outlook, positioning the company favorably to address investor concerns and capitalize on growth opportunities in an uncertain market.

Alight Inc is projecting total revenue to decline by 3%-4% year-over-year, with an adjusted EBITDA forecasted to improve only slightly, indicating ongoing challenges in revenue growth and profitability margins. The company reported a concerning 20% year-over-year drop in project revenue and a slight decline in recurring revenue, highlighting significant weaknesses in its core financial metrics. Furthermore, the expectation of a $45 million revenue impact due to an elongated sales cycle and lower volumes compounds the unfavorable outlook surrounding Alight's financial performance moving forward.