KeyBanc Sees Inflection Point for Alight (ALIT) After Volatile Year in Healthcare IT

Alight, Inc. (NYSE:ALIT) is included among the 13 Dividend Stocks with Over 8% Yield.

Photo by nathan dumlao on Unsplash

On January 8, KeyBanc slashed its price target on Alight, Inc. (NYSE:ALIT) to $2.50 from $6, while sticking with an Overweight rating. After a rough and uneven year for healthcare IT stocks, the firm said the fundamentals tell a more encouraging story. KeyBanc described the period as a “year of inflection” for many names in the group, with earnings estimates resetting and valuations largely bottoming out. Momentum is expected to carry on across much of its coverage, though the firm cautioned that competitive pressures and regulatory issues could continue to weigh on valuation multiples.

In October 2025, Alight said it had expanded its partnership with IBM into a multi-year collaboration focused on bringing IBM watsonx into Alight’s platform. The effort is aimed at reshaping the employee benefits experience and improving enterprise operations, while pushing the company further along its digital transformation. The goal is to give clients AI-powered tools that deliver more personalized benefits support, with an emphasis on responsible AI use.

As part of the deal, Alight and IBM are building a virtual AI innovation lab. The lab is designed to speed up the redesign of business processes, quickly test new AI-driven ideas, and support ongoing co-innovation. Teams from both companies, along with Alight’s clients, will work together to explore use cases, improve benefit guidance such as leave-of-absence support, and develop new capabilities tailored to specific client needs.

Early work tied to the Alight Worklife AI Assistant has already shown meaningful promise, with initial prototypes pointing to potential employee productivity gains of more than 90%. That early traction highlights the scale of impact AI could have as the project moves toward broader deployment. Pilot programs are planned for early 2026, with a wider rollout expected in the first half of the year.

Alight, Inc. (NYSE:ALIT) is a cloud-based human capital technology and services company that provides human capital management solutions to organizations across a range of industries.

READ NEXT: 15 Best S&P 500 Dividend Stocks to Buy in 2026 and Retirement Stock Portfolio: 12 Low Risk Investments

Disclosure: None.