BofA Securities has resumed coverage of Alight Solutions (ALIT) and assigned the company an underperform rating with a price target of $1.40. The move comes as the shares trade around $1.31, close to a 52-week low of $1.29, following an almost 80% decline over the past year according to InvestingPro data.
Alight provides a benefits administration platform that integrates into client human-resources ecosystems. The company operates under a contract-based revenue model, with management-reported metrics indicating that approximately 92% of its revenue is recurring.
In its analysis, BofA emphasized that the company faces a structural timing mismatch between bookings and reported revenue. The firm pointed to extended sales cycles and protracted implementation timelines as sources of friction that delay the conversion of signed contracts into recognized revenue on the company ooks. That lag creates a disconnect between the pace of new business secured and the revenue appearing in reported results.
Compounding those operational timing issues, Alight has undergone notable changes at the top of the organization. The company experienced significant C-suite turnover; a new chief executive officer and a new chief financial officer took their positions last month. BofA warned that the leadership shuffle could slow near-term turnaround activity until the incoming team sets and communicates a refreshed strategic plan.
Recent corporate filings and announcements provide more detail on the personnel moves. Effective January 21, 2026, Alight entered into a consulting agreement with its former Chief Strategy Officer, Dinesh Tulsiani, under which he will offer advisory services for an initial three-month period with the option to extend. In the finance office, Greg Giometti was named Interim Chief Financial Officer effective January 9, 2026, after the departure of Jeremy Heaton. Giometti has been with Alight since 2020 and has held substantial roles within the companyinance organization.
Separately, Alight disclosed a separation agreement with CEO Dave Guilmette, who is scheduled to step down at the end of December 2025. That agreement allows for the possibility that Guilmette could serve as a consultant to help shape Alightor its 2026 business plan.
Not all analysts have reduced their view to a sell-side downgrade. DA Davidson has kept a Buy rating on the stock, while lowering its price objective from $6.00 to $5.00. The firm cited expectations that new senior management will issue conservative guidance as a reason for trimming the target.
Taken together, these developments portray Alight in a period of transition: operationally challenged by elongated sales and implementation timetables and strategically unsettled by recent executive departures and interim appointments. Market pricing has reflected those pressures, with the shares near a yearly low and substantial cumulative losses over the past twelve months.
Investors and market participants will likely monitor how quickly the incoming leadership establishes an actionable strategic plan and whether the company can shorten the lag between bookings and revenue recognition. Until that clarity arrives, BofA nd other market watchers appear to view execution risk as the dominant near-term concern for Alight.