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.

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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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