Needham Reiterates a Buy Rating on Alight Inc (ALIT), Keeps the PT

Alight, Inc. (NYSE:ALIT) is one of the Most Oversold Penny Stocks to Buy Now. On August 6, Needham analyst Kyle Peterson reiterated a Buy rating on Alight, Inc. (NYSE:ALIT) with a price target of $6.

The analyst noted that the company delivered strong results for the second quarter of 2025, which were better than expected. Peterson also likes the steady growth in recurring revenue along with good control over expenses. He acknowledged that the company lowered its fiscal 2025 outlook due to longer deal cycles, which caused the share price to drop. However, despite this, Perterson remains optimistic about the company’s future as the management confirmed its EBITDA, EPS, and free cash flow guidance.

In addition, Alight, Inc. (NYSE:ALIT) also announced a new partnership with Goldman Sachs Asset Management, which is expected to improve the company’s Worklife platform.

Alight, Inc. (NYSE:ALIT) provides cloud-based human capital management solutions to organizations, which 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.