Kyle Peterson, an analyst from Needham, reiterated the Buy rating on Alight (ALIT – Research Report). The associated price target is $12.00.
Kyle Peterson has given his Buy rating due to a combination of factors that suggest optimism about Alight’s future performance and strategic decisions. Although Alight’s fourth-quarter results for 2023 fell short of expectations, due to a product change that affected revenue, Peterson sees potential for revenue growth throughout fiscal year 2024. This anticipated improvement, alongside management’s proactive steps in addressing the company’s strategic direction, are key elements of his positive outlook.
Further bolstering his recommendation, Peterson highlights Alight’s decision to hire a financial advisor to conduct a strategic portfolio review. He believes this could lead to a more focused business model, concentrating on the Business Process as a Service (BPaaS) platform. The potential divestitures or asset sales could provide Alight with opportunities to reduce debt or return capital to shareholders. These moves, according to Peterson, are likely to optimize shareholder value, supporting his decision to reiterate a Buy rating despite a modest adjustment to the target price.
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Alight (ALIT) Company Description:
Foley Trasimene Acquisition Corp is a blank check company.
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