Alight (ALIT) Stock Forecast & Price Target

Alight Inc has demonstrated a robust year-over-year growth in its BPaaS revenue, which amounted to $125 million and accounted for approximately 24% of total revenue, reflecting a 7.8% increase. The company is expected to see improved growth within its core, non-divested business by late FY25, driven by an increasing share of comprehensive bundled deals. Furthermore, solid execution and disciplined expense management are anticipated to enhance EBITDA and EPS growth over the forthcoming years, reinforcing a positive outlook for the company's financial performance.

Alight Inc. is experiencing a decline in key financial metrics, highlighted by a 0.2% year-over-year decrease in recurring revenue and a significant 20% year-over-year drop in project revenue. The company's decision to lower its top-line guidance for FY25, attributing it to a lengthening sales cycle and reduced volumes, suggests potential ongoing challenges, with an expected revenue impact of $45 million for the year. Additionally, despite reporting 2Q revenue of $528 million, which surpassed estimates, it still reflects a 4% year-over-year decline on a pro forma basis, indicating underlying weaknesses in the company's financial performance.