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Investing.com - Cantor Fitzgerald raised its price target on BigBear.ai Holdings (NYSE:BBAI) to $6.00 from $5.00 on Tuesday, while maintaining an Overweight rating on the stock. The AI company, currently valued at $1.52 billion, has shown remarkable momentum with a 59.33% year-to-date return despite its high volatility (Beta 3.19).
The price target increase reflects "secular tailwinds and improved financial flexibility" for the company, despite what Cantor Fitzgerald described as "near-term execution issues." According to InvestingPro, the stock generally trades with high price volatility, and analysts don’t expect profitability this year - just two of multiple insights available with a subscription.
BigBear.ai reported disappointing second-quarter results, with revenue declining 18.4% to $32.5 million, falling short of FactSet consensus estimates. The revenue miss was primarily attributed to federal program disruptions related to the U.S. Army’s efforts to consolidate its data architecture.
The company demonstrated progress on key initiatives, including core product development and balance sheet improvements. Its ending backlog reached $380 million, representing a 42.9% year-over-year increase.
BigBear.ai lowered its full-year 2025 revenue guidance to a range of $125 million to $140 million and withdrew its previous Adjusted EBITDA guidance, which had projected a negative single-digit million range.
In other recent news, BigBear.ai Holdings reported its second-quarter 2025 earnings, revealing a significant miss in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of -$0.71, which was considerably lower than the expected -$0.06, marking a surprise of over 1,083%. Revenue for the quarter was $32.5 million, falling short of the projected $41.19 million by 21.1%. In light of these results and disruptions in federal contracts, particularly those supporting the U.S. Army, BigBear.ai has adjusted its full-year revenue guidance to between $125.0 million and $140.0 million, down from its previous range of $160.0 million to $180.0 million. Following these developments, H.C. Wainwright reduced its price target for BigBear.ai to $8.00 from $9.00, though it maintained a Buy rating. These recent developments have garnered attention from investors and analysts alike, highlighting the challenges BigBear.ai faces in meeting its financial targets.
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