Needham says Alight remains Top Pick for 2023

Needham analyst Kyle Peterson believes the recent follow-on equity offering conducted by Alight in August was “frustrating for some investors given the timing.” However, the firm argues that it further reduces sponsor overhang and likes that Alight did a concurrent buyback to help return capital to shareholders. The firm, which also believes that the bookings impact is manageable given the long-term nature of BPaaS deals and argues that many of these will close once the macro picture improves, reiterates a Buy rating and $13 target on the stock, which remains its Top Pick for 2023.