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Investing.com - H.C. Wainwright raised its price target on BigBear.ai Holdings (NYSE:BBAI) to $9.00 from $6.00 on Tuesday, while maintaining a Buy rating on the stock. The AI company, currently valued at approximately $2 billion, has seen its stock surge over 365% in the past year, according to InvestingPro data.
The research firm cited BigBear.ai’s 52.6% share price increase during the first half of 2025, significantly outperforming the Russell 2000 Index, which declined 2.5% in the same period. This outperformance stems from new customer acquisitions, contract momentum, and favorable secular trends in AI-driven defense and security sectors. InvestingPro data shows the stock trades with high volatility (Beta of 3.05) and currently displays overbought conditions, suggesting investors should monitor their positions carefully.
H.C. Wainwright noted that BigBear.ai’s double-digit revenue growth expectations for 2026 are supported by a $384.9 million backlog as of Q1 2025. The company has recently announced multiple deployments of its biometric software for Enhanced Passenger Processing at international airports and ports of entry, a strategic partnership in the UAE, and a collaboration with Analogic. With current revenue of $159.9 million and a moderate debt level of $111.3 million, the company maintains a healthy current ratio of 1.66, according to InvestingPro metrics.
The firm also highlighted recent balance sheet improvements that provide BigBear.ai with flexibility to pursue potential acquisitions, which could accelerate revenue growth and profitability. These positive developments led H.C. Wainwright to expand its valuation multiple from 10.0x to 12.0x.
The new $9 price target remains below BigBear.ai’s 52-week high of $10.36 and significantly lower than the valuation multiple of AI peer Palantir Technologies (NASDAQ:PLTR), which trades at more than 66.0x 2026 revenue estimates, suggesting potential for further multiple expansion according to the research firm.
In other recent news, BigBear.ai reported a 4.9% increase in first-quarter revenue for 2025, reaching $34.8 million, although it fell short of FactSet consensus estimates. The company also announced a significant backlog of $385 million, reflecting a 30.1% increase from the previous year. BigBear.ai has confirmed its financial guidance for 2025, projecting revenue growth between 1.1% and 13.7%. Meanwhile, Cantor Fitzgerald adjusted its 12-month price target for BigBear.ai from $6.00 to $5.00, maintaining an Overweight rating, citing macroeconomic concerns. The company has also formed a strategic partnership with Easy Lease PJSC and Vigilix Technology Investment in the UAE to advance AI solutions in the region. Additionally, BigBear.ai has deployed its biometric software for Enhanced Passenger Processing at twelve major international airports and ports of entry, enhancing security and efficiency. In leadership changes, Sean Ricker has been named interim CFO following the departure of Julie Peffer. Lastly, BigBear.ai has partnered with Hardy Dynamics to support the U.S. Army’s Project Linchpin, focusing on integrating AI technologies into future warfighting capabilities.
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