Needham analysts believe the recent pullback in software company Alight warrants a deeper look. The cloud-based business solution company has lost more than 18% in the current quarter, dragging shares down 9.5% for the year. The selloff came following its second-quarter earnings in August, during which the company reported a 36.3% year-over-year decline in business process as a service bookings. A follow-on offering also contributed to the selloff, according to analyst Kyle Peterson.
The analyst also maintained his $13 price target, implying almost 72% upside potential from Wednesday's close. "While we believe the recent follow-on equity offering was frustrating for some investors given the timing, it further reduces sponsor overhang , and we like that ALIT did a concurrent buyback to help return capital to shareholders," Peterson wrote. The analyst highlighted Alight's diverse offering of healthcare, benefits and payroll solutions.
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Fonte: CNBC - 🏆 12. / 72 Leggi di più »