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Investing.com - DA Davidson has maintained its Buy rating and $10.00 price target on Alight Solutions (NYSE:ALIT) following the company’s second-quarter earnings report. The target aligns with the broader analyst consensus, with targets ranging from $7 to $11. According to InvestingPro analysis, the stock appears undervalued at its current price of $4.24, trading near its 52-week low of $4.08.
The company’s Q2 results exceeded DA Davidson’s expectations, with total revenue coming in 1% above forecasts and adjusted EBITDA surpassing projections by 7%.
Despite affirming its 2025 guidance for adjusted EBITDA, Alight has reduced its total revenue guidance by 2% due to delayed deal closings in the current market environment.
The updated guidance now projects total revenue to fall 4%-6% year-over-year to $2.28 billion-$2.33 billion, while adjusted EBITDA is expected to rise 4%-9% year-over-year to $620 million-$645 million.
Alight management scheduled a conference call for Wednesday morning at 8:30 am ET to discuss the results and provide additional commentary on the company’s outlook. For deeper insights into ALIT’s valuation, financial health, and 10+ additional ProTips, visit InvestingPro.
In other recent news, Alight Solutions reported its second-quarter 2025 earnings, revealing a mixed financial picture. The company achieved a revenue of $528 million, slightly surpassing analysts’ forecasts. However, earnings per share (EPS) came in at $0.10, falling short of the expected $0.11. A significant development was the $983 million goodwill impairment charge, which raised concerns among investors. Despite these challenges, Alight’s second-quarter performance was marked by stronger recurring revenue growth and effective management of operating expenses. Needham, a research firm, responded to the earnings report by lowering Alight’s stock price target from $8.00 to $6.00, citing growth concerns. Nevertheless, Needham maintained a Buy rating on the stock. These recent developments highlight the complexities facing Alight Solutions in its financial journey.
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