JPMorgan Downgrades Alight Solutions (ALIT) to Neutral

JPMorgan analyst Tien-tsin Huang downgraded Alight Solutions (NYSE: ALIT) from Overweight to Neutral with a price target of $8.00.

The analyst comments: "We continue to see significant latent value in ALIT's core benefits management systems of record business, and we can see a path to robust margin expansion and free cash flow growth, but given recent transformation plus a CEO transition in flight, we prefer a sideline view. • Alight has undertaken a serious transformation recently, including operational digital transformation (cloud transition and infrastructure consolidation) as well as transformational M&A (sold roughly one-third of the business to private equity). The CEO change compounds the uncertainty. A re-rating may be harder to earn until a track record under new leadership is established. • The stock is cheap on an adjusted basis but less so on a GAAP basis. ALIT now trades at only 9x NTM management adj EBITDA but as much as 14x when burdened with stock-based comp, restructuring, and other management adjustments."

For an analyst ratings summary and ratings history on Alight Solutions click here. For more ratings news on Alight Solutions click here.

Shares of Alight Solutions closed at $7.04 yesterday.

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