DA Davidson reiterates Buy rating on Alight Solutions stock, maintains $10 target

Published 21/07/2025, 14:42
DA Davidson reiterates Buy rating on Alight Solutions stock, maintains $10 target

Investing.com - DA Davidson has reiterated its Buy rating on Alight Solutions (NYSE:ALIT) with a price target of $10.00 ahead of the company’s upcoming second-quarter earnings report. The target represents an 82% upside from the current price of $5.50, with analyst targets ranging from $8 to $11. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis.

The research firm expects Alight to report its Q2 2025 results on August 6, with performance likely to meet or modestly exceed both the firm’s forecasts and consensus estimates. While the company wasn’t profitable in the last twelve months, analysts predict profitability this year, with an EPS forecast of $0.61 for 2025.

DA Davidson anticipates that Alight’s management will either affirm or slightly adjust their 2025 guidance when they release the quarterly results.

The firm maintains a positive outlook on Alight, noting that management has incorporated an appropriate level of conservatism in their 2025 guidance.

DA Davidson’s $10 price target for Alight Solutions stock remains unchanged as the firm continues to recommend a Buy position on the shares.

In other recent news, Alight Inc. reported its first-quarter 2025 earnings, meeting expectations with an earnings per share (EPS) of $0.10 and surpassing revenue forecasts with $548 million. This performance reflects Alight’s strong recurring revenue base and strategic focus on innovation. DA Davidson maintained its Buy rating on Alight’s stock, with a price target of $10, after the company’s first-quarter results exceeded expectations in revenue and adjusted EBITDA by 2% and 3%, respectively. Analyst Peter Heckmann noted Alight’s management’s confidence in their guidance for the year 2025, indicating a stable outlook for the company.

Additionally, Alight announced the appointment of David Essary as the new Chief Strategy Officer, tasked with guiding the company’s corporate strategy, including mergers and acquisitions. Essary’s extensive experience in the health and benefits sector is expected to bolster Alight’s strategic direction and enhance its Alight Worklife® platform. The company reaffirmed its full-year 2025 financial outlook, projecting revenue between $2.32 billion and $2.39 billion, with adjusted EBITDA ranging from $605 million to $645 million. Alight remains focused on innovation and cost reduction for clients, despite a cautious market environment.

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