Alight

ALIT · NYSE

$8.60+$0.65 (+8.18%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $7.95

ALIT analyst rating

BuyConsensus of 6 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy3
Hold3
Underperform0
Sell0

12-month price target · 5 analysts

Average $17.34 (+101.6% upside)

Low: $13.13
Now: $8.60
High: $23.10

Upgrades and downgrades

The latest rating actions, newest first

ALIT analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
DA Davidson	Sep 24, 2026	Maintains	Buy	$32.00 → $22.00	57%
Citigroup	Aug 20, 2026	Maintains	Neutral	$20.00 → $16.00	46%
DA Davidson	Jul 2, 2026	Maintains	Buy	$2.00 → $40.00	57%
DA Davidson	Jun 22, 2026	Maintains	Buy	$2.00	57%
Citigroup	Feb 20, 2026	Downgrade	Buy → Neutral	$6.50 → $1.00	46%
Needham	Feb 19, 2026	Downgrade	Buy → Hold	—	40%
Keybanc	Feb 19, 2026	Downgrade	Overweight → Sector Weight	—	35%
DA Davidson	Feb 10, 2026	Maintains	Buy	$6.00 → $5.00	57%
Keybanc	Jan 8, 2026	Maintains	Overweight	$6.00 → $2.50	35%
DA Davidson	Dec 8, 2025	Maintains	Buy	$6.00	57%

The case for and against

Updated Oct 14, 2026

Bull case

Alight is viewed favorably because its technology-led transformation toward a more automated service model should improve client outcomes and lower delivery costs, while its Alight Worklife platform supports sticky demand across benefits administration, healthcare navigation, financial well-being, and leave management. Despite 1Q revenue declining 3% Y/Y to $534M, results beat expectations, project revenue rose 29% to $36M, adjusted EBITDA was $104M, and first-half 2026 free cash flow of $101M showed 51%-52% conversion, providing meaningful debt paydown capacity. With management prioritizing leverage reduction ahead of the August 2028 term loan maturity and the business expected to return to growth in 2028, the outlook remains constructive even after the near-term declines anticipated in 2026 and 2027.

Bear case

Alight is facing a prolonged fundamental reset as higher customer attrition in 2025 is now expected to pressure 2026 and 2027 results, with management guiding for a 7%-8% revenue decline and a 26%-29% adjusted EBITDA decline in 2026. The business also appears to be losing operating momentum, as 2025 organic revenue fell about 4% and adjusted EBITDA dropped 6% year over year amid softer bookings and lower non-recurring project revenue. With $215M in cash against $1,996M of debt and net leverage of 3.6x trailing EBITDA likely peaking at 5.2x-5.3x in 2Q27, the turnaround looks slower and riskier than before.

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