Alight (ALIT) Stock Forecast & Price Target

Alight Inc's BPaaS revenue reached $125 million, reflecting a year-over-year growth of 7.8%, which constitutes approximately 24% of the company's total revenue. The firm anticipates that growth within its core, non-divested business will strengthen in late FY25, aided by an increase in more comprehensive bundled deals and disciplined expense management, which is expected to enhance both EBITDA and EPS over several years. Moreover, the positive outlook is bolstered by the potential for accelerated growth if bookings improve and the successful realization of recent project-related initiatives.

Alight Inc. experienced a 0.2% year-over-year decline in recurring revenue alongside a significant 20% decrease in project revenue, indicating persistent challenges in maintaining revenue growth. Furthermore, the company revised its top-line guidance for FY25, projecting a reduction of $45 million in revenue due to prolonged sales cycles and declining volumes. Additionally, despite reporting 2Q revenue of $528 million, which surpassed estimates, the figure still represented a 4% decline year-over-year on a pro forma basis, raising concerns about future performance.