The pain felt by Alight (ALIT 3.17%) shareholders continued through Monday's trading session. The stock, battered last week after investors traded out of it following a disappointing earnings report, shed a bit more of its value that day. Its price fell by 5%, as an analyst at a top bank became more bearish on the company.
A deep cut
That pundit was Bank of America Securities' Curtis Nagle, who made a rather drastic chop to his Alight fair value assessment. He reduced it to $0.50 per share, well down from his previous $1.40. Not surprisingly, he maintained his underperform (i.e., sell) recommendation on the beleaguered tech stock.
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Nagle's take was essentially a reaction to the company's fourth-quarter and full-year 2025 earnings, which it reported last Thursday. According to reports, the analyst wrote that Alight's significant miss on current (first) quarter top-line guidance implies a notable decline in revenue retention. That's particularly worrying in an environment where, Nagle opined, recurring revenue is generally solid.
The prognosticator noted that the recently installed CEO, Rohit Verma, has pushed for operational excellence. Judging by the sharply negative investor reaction after earnings, however, it seems the market doesn't believe this goal has been met.
NYSE: ALIT
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Gloomy pronouncement
If I were an Alight shareholder, I'd also be concerned about Verma's gloomy forecast on the conference call discussing the results: that its struggles in 2025 might just continue into 2026. While I wouldn't necessarily write the company off completely, I feel it needs to start showing clear signs of improvement -- and quickly -- for investors to return to it.
