DA Davidson Lowers the PT on Alight (ALIT), Keeps a Buy

Alight, Inc. (NYSE:ALIT) is one of the Best Small-Cap Growth Stocks to Buy Right Now. On August 7, DA Davidson lowered the firm’s price target on Alight, Inc. (NYSE:ALIT) to $7 from $10 and kept a Buy rating on the stock.

The reduced price target follows the company’s fiscal second-quarter results for 2025, where the company posted slightly better than expected results. The analyst noted that the company’s total revenue was 1% above forecasts while the adjusted EBITDA was 7% ahead. However, regardless, management lowered its revenue guidance for 2025 due to delays in closing new deals and continued weakness in non-recurring project revenue.

DA Davidson Lowers the PT on Alight (ALIT), Keeps a Buy

A person viewing their financial progress on a computer, highlighting the financial health offerings of the company.

As a result, the firm also reduced its revenue and earnings forecasts for 2025 through 2027. The analyst noted that DA Davidson sees 2025 as a transitional year for the company.

Alight, Inc. (NYSE:ALIT) provides cloud-based human capital management solutions that help organizations manage employee benefits like health, wealth, and leave programs.

While we acknowledge the potential of ALIT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALIT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.