BigBear.ai (BBAI) soared on Wednesday after it secured a major Department of Defense (DoD) contract and now analysts are taking note.
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BBAI surged almost 45% yesterday on the news and extended gains by another 10% in the pre-market session on Thursday as analysts weighed in with thoughts on the company.
Impressed by the contract win and some recent board changes, Cantor Fitzgerald analysts more than doubled their price target on the stock to $8 from a previous $3.50 target. They also revised forecasts for BBAI revenues for both the Fiscal fourth quarter 2024 and full-year 2025 top-line estimates.
BBAI works in the same space as Palantir (PLTR), delivering AI-powered intelligence platforms for the defense sector. PLTR stock has also soared after it delivered bumper earnings this week.
BBAI Rallies on Contract Wins
Shares of BBAI surged after the DoD’s Chief Digital and Artificial Intelligence Office (CDAO) said it will advance the company’s Virtual Anticipation Network (VANE) prototype to full use.
BBAI also recently secured a prime contract under the U.S. Department of Navy’s SeaPort Next Generation program.
The announcements come after Kevin McAleenan succeeded Mandy Long as CEO at BBAI last month.
Cantor notes that despite a less robust Fiscal third quarter of 2024, contract wins and strategic changes make the stock more appealing. The company will report Fiscal Q4 results on March 12th. The stock declined almost 10% following the release of the Q3 earnings, a trend that has seen BBAI decline after earnings release for eight consecutive quarters.
Is BBAI Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy rating on BBAI and an average price target of $7.50, though this may be subject to change as analysts react to the stock price movement this week.
