Alight initiated with a Buy at Needham

Needham analyst Kyle Peterson initiated coverage of Alight with a Buy rating and $12 price target. The company has a durable business model with 97% average revenue retention and 84% recurring revenue, along with a healthy combination of growth and profitability, which make the stock a "compelling" pick for GARP investors, the analyst tells investors in a research note. At enterprise value to expected forward EBITDA multiple of 11-times, risk-reward on the name is "favorable", Peterson adds.