Alight price target raised to $14 from $13 at Wedbush

Wedbush raised the firm’s price target on Alight to $14 from $13 and keeps an Outperform rating on the shares. Alight announced it will be selling its Payroll and Professional Services business for up to $1.2B to H.I.G. Capital at the value of 10-times 2023 adjusted EBITDA and 24-times unlevered free cash flow while also increasing its share repurchase program, which will viewed positively by the Street, the firm says. Wedbush believes this was the smart move by Alight, following initiating a strategic portfolio review at its earnings last month, this transaction will further accelerate its successful transition to a SaaS-based model with its deal pipeline strengthening within its install base.