Citi calls Alight ‘secular winner,’ starts with Buy rating

Citi analyst Peter Christiansen initiated coverage of Alight with a Buy rating and $12 price target. Given the rising complexities of human capital management, Alight is a “secular winner,” benefiting from rapid modernization of HCM solutions and its “differentiated approach” to scaling its business process as a service platform, the analyst tells investors in a research note. The firm says transitioning to BPaaS lowers Alight’s cost to serve and improves the speed of revenue recognition with improved product portfolio modularity. Citi believes the stock offers both earnings and multiple upside.