DA Davidson Maintains ‘Buy’ Rating on Alight, Inc. (ALIT), Sets PT at $10
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Alight, Inc. (NYSE:ALIT) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
A technical analyst using a cloud-based analytics dashboard for financial services.
Maintaining a ‘Buy’ rating, DA Davidson reiterated its price target of $10 on Alight, Inc. (NYSE:ALIT). This represents a potential upside of 75.4% as the company’s shares are currently trading at $5.70. This reiteration comes ahead of Q2 results, which are scheduled for release on August 5, 2025.
The analyst expects that Alight, Inc. (NYSE:ALIT) will meet or slightly exceed expectations with its Q2 results. There has been some skepticism surrounding the company’s profitability as it has not been profitable over the past year. However, analyst projects earnings per share (EPS) of $0.61 in 2025, reinforcing its optimism about the company’s future. Furthermore, the analyst believes that the management of Alight, Inc. (NYSE:ALIT) has been conservative in its 2025 guidance thus far, which it believes will be adjusted.
Additionally, in its Q2 2025 investor letter, Aristotle Capital Boston, LLC stated the following in its ‘Small Cap Equity Strategy’:
“Alight, Inc. (NYSE:ALIT), operates a cloud-based platform that provides human capital management and benefits administration solutions to mostly Fortune 500 companies. We believe the company has the opportunity to grow its business through the expansion of existing client relationships along with attracting new clients to their platform. Self-help initiatives implemented by the new CEO coupled with technological enhancements to the platform are expected to streamline operational costs and improve margins on a go-forward basis.”
Alight, Inc. (NYSE:ALIT), a cloud-based integrated digital human capital and business solutions provider, offers Alight Worklife, which is a cloud-based employee engagement platform. It is included in our list of the best cloud 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.
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