Citi has reduced its recommendation on Alight Solutions to Neutral from Buy and dramatically lowered its price target to $1.00 from $6.50, reflecting a marked change in the firm's view of the human capital and business solutions company.
Price target and rating change
The firm's revised price objective represents an 85% cut from its previous level. Alongside this move, Citi shifted its formal rating on the stock from Buy to Neutral. At the time the market data was cited, Alight Solutions shares were trading at $0.81. The share price has fallen roughly 38% over the previous week and about 88% over the last 12 months.
Earnings and analyst follow-up
Alight Solutions reported fourth-quarter 2025 results that missed consensus expectations. The company posted earnings per share of $0.18, compared with a forecast of $0.24. Reported revenue for the quarter was $653 million versus an anticipated $654.62 million.
Following the quarterly release, Needham also adjusted its stance on the stock, moving from Buy to Hold and pointing to the weak quarter as a driving factor. In connection with the results, Alight opted not to provide earnings guidance for 2026, attributing that decision to near-term challenges.
Market reaction and investor concerns
The combination of Citi's downgrade, Needham's rating change and the lack of 2026 guidance has heightened investor concern about the company's near-term outlook and financial position. Those developments have contributed to the recent share-price deterioration.
Other analysis
One third-party analysis noted that at current prices the stock may be undervalued, and that subscribers can access additional research tools and ProTips; details on those services were referenced as available to paid users.
What this means
Investors and market participants will be watching subsequent company disclosures and any further analyst commentary for signs of stabilization or additional downside risk. For now, the pricing action and analyst moves reflect diminished confidence among some sell-side firms following the latest quarterly report.