Joseph Vafi, an analyst from Canaccord Genuity, maintained the Buy rating on Alight (ALIT – Research Report). The associated price target is $12.00.
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Joseph Vafi has given his Buy rating due to a combination of factors, primarily driven by Alight’s ongoing transition towards a more reliable recurring revenue model. This transition is being facilitated by increased adoption of the Alight Worklife platform, which is also expected to contribute to margin expansion through cost efficiencies.
Despite some short-term challenges such as project revenue headwinds and potential delays in revenue impacts from large implementations, Vafi’s outlook remains positive. He acknowledges that the current employment levels might constrain volume growth in 2025, leading to slight downward adjustments in revenue and NG EBITDA estimates. Nonetheless, these adjustments do not significantly alter the medium-term positive trajectory projected for Alight.
In another report released on February 7, D.A. Davidson also maintained a Buy rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALIT in relation to earlier this year.