Alight (ALIT) Stock Forecast & Price Target

Alight Inc. reported a notable year-over-year increase in BPaaS revenue, reaching $125 million, which constitutes approximately 24% of total revenue, indicating a strong foundation for growth. The company's strategic focus on improving its core business, particularly in the context of bundled deals and disciplined expense management, is expected to enhance EBITDA and EPS growth over the coming years. Additionally, Alight's diversified offerings in healthcare and benefits solutions position it well to pursue larger deals, further accelerating top-line growth.

Alight Inc. is experiencing a concerning financial outlook as its updated guidance forecasts a decline of 3%-4% year-over-year in total revenue, projecting a range between $2.25 billion and $2.28 billion, alongside a modest adjusted EBITDA increase of up to 4%. The company's performance is further pressured by a 0.2% drop in recurring revenue and a significant 20% decrease in project revenue, indicating underlying weaknesses in growth and demand. Additionally, the revised top-line guidance for FY25 reflects a $45 million revenue impact due to lengthening sales cycles and lower volumes, compounding the company's challenges ahead.