Needham Remains Bullish on Alight (ALIT), Partnerships Expansion Supports Company’s Growth Outlook

Alight Inc. (NYSE:ALIT) is one of the best tech stocks under $10 to invest in. On September 23, Kyle Peterson from Needham reiterated a Buy rating on the stock with an unchanged price target of $4.50.

This rating action follows Alight Inc.’s (NYSE:ALIT) latest business updates at Citi’s Global Technology, Media and Telecommunications Conference on September 4. The company stated that it is repositioning itself to focus primarily on employee benefits services after selling its payroll and professional services units.

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Management has set a growth target of 4%-6% over the medium term, supported by new partnerships, such as one with Goldman Sachs, which is expected to contribute to next year’s growth. Notably, for FY 2025, the company guided for revenue to decline by around 2%.

Revenue retention remains a key focus for the management – it is currently at 93.5% levels, and the company aims to return to its historical best rate of 98%. On a positive note, its sales pipeline has strengthened, with finalist-stage deals up 35%. Artificial intelligence is another priority, with Alight aiming to use it to improve personalization and employee services.

Alight Inc. (NYSE:ALIT) is a provider of employee benefits and human capital solutions through its cloud-based Alight Worklife platform.

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