Needham Reduces PT on Alight, Inc. (ALIT); DA Davidson Maintains 'Buy' Rating

Alight, Inc. (NYSE:ALIT) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.

On August 6, 2025, Needham reduced its price target on Alight, Inc. (NYSE:ALIT) from $8 to $6, maintaining a ‘Buy’ rating. This price revision follows the company’s Q2 results. For the quarter, its revenue and EPS surpassed expectations, thanks to strong recurring revenue growth and disciplined expense management. However, the company reduced its FY2025 revenue guidance due to lengthening deal cycles. At the same time, EBITDA, EPS, and free cash flow targets were reaffirmed.

Meanwhile, on the same day, DA Davidson maintained its ‘Buy’ rating on Alight, Inc. (NYSE:ALIT) with a $10 price target. The company’s results were stronger than analysts’ estimates, reinforcing its bullish stance.

Alight, Inc. (NYSE:ALIT), a U.S.-based IT and consulting company, offers cloud systems, outsourcing, and HR-related advisory services. It is included in our list of the most oversold stocks.

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.