BigBear.ai Holdings Surpasses Analyst Target Price of $5.83

BigBear.ai Holdings Inc (BBAI) shares have crossed above the average analyst 12-month target price of $5.83, reaching $5.84/share. Analysts have three different target prices contributing to the average, ranging from $3.50 to $9.00. The company's valuation has gotten stretched, and investors should assess whether the price will continue to rise or if it's time to take profits.

BigBear.ai Holdings Inc (BBAI) has seen its shares cross above the average analyst 12-month target price of $5.83, trading at $5.84 per share as of the latest data [2]. This development comes amidst a range of analyst opinions, with three different target prices contributing to the average, ranging from $3.50 to $9.00 [2]. The company's recent performance has sparked debate among investors about whether the price will continue to rise or if it's time to take profits.

BigBear.ai, headquartered in McLean, Virginia, specializes in AI-driven software designed to help organizations interpret complex data and make critical decisions with precision. The company has been on a remarkable run, reflecting the market’s appetite for AI-linked plays. Over the past year, BBAI has delivered a 480% gain, far outpacing the broader market. Year-to-date (YTD), shares have risen 60% [1]. Despite the impressive growth, the stock is trading at a premium, with a valuation of 12 times sales, well above the industry average [1].

The company's latest earnings report, released on May 1, showed mixed results. Revenue came in at $34.8 million, a 5% increase from the same quarter last year, driven mainly by additional revenue from the Department of Homeland Security and Digital Identity awards. However, this figure missed the consensus estimate of $40.24 million. The company’s gross margin stood at $7.4 million, reflecting a 5.8% improvement in profitability from the previous year’s quarter. Operating loss narrowed 78% to $21.2 million, a sign of better cost management. While still unprofitable, BigBear.ai almost halved its net loss from a year ago, bringing it down to $62 million. Loss per share also improved 63% to $0.25, although it missed the projected $0.05 loss per share [1].

Analysts currently assign BBAI stock with a consensus “Moderate Buy” rating, reflecting a balanced but constructive outlook. Of the four analysts tracking the stock, two issue a “Strong Buy” recommendation while two more opt for a “Hold,” indicating measured confidence in the company’s trajectory [1]. The firm has reaffirmed its full-year 2025 revenue guidance of $160 million to $180 million and expects the loss per share to widen 50% year-over-year (YOY) to $0.06 in Q2 2025, while projecting full-year 2025 loss per share to narrow 3.9% to $0.25 and 2026 loss per share to improve a further 20% to $0.20 [1].

Investors are advised to closely monitor the company’s earnings call and future guidance to gauge the sustainability of the stock's immediate price movement. As the company continues to operate in the dynamic and rapidly evolving field of AI, investors should remain vigilant to changes in market conditions and analyst opinions.

References:
[1] https://finance.yahoo.com/news/hidden-gem-ai-stock-major-144536994.html
[2] https://www.nasdaq.com/articles/bigbearai-holdings-reaches-analyst-target-price-0