Alight (ALIT) Stock Forecast & Price Target

Alight Inc. demonstrated a significant year-over-year revenue growth of 7.8% in its BPaaS segment, contributing approximately 24% to its total revenue, which indicates a solid demand for its human capital management solutions. The company's strategic focus on enhancing its core business and the anticipated improvement in comprehensive bundled deals are poised to drive future revenue growth, particularly as it streamlines operations following the divestiture of its Professional Services segment. With disciplined expense management expected to bolster EBITDA and EPS growth, the outlook for Alight remains positive, positioned to capitalize on expanding opportunities in both domestic and international markets.

Alight Inc's updated guidance indicates a projected revenue decline of 3%-4% year-over-year, translating to a total revenue expectation of $2.25 billion to $2.28 billion, alongside a modest adjusted EBITDA range from flat to 4% growth. Significant metrics contributing to a negative outlook include a 0.2% year-over-year dip in recurring revenue coupled with a staggering 20% decrease in project revenue, reflecting ongoing operational challenges. Furthermore, the company’s lowered FY25 top-line guidance, driven by a lengthening sales cycle and reduced sales volume, is anticipated to negatively impact in-year revenue by approximately $45 million.