Artificial intelligence (AI) company BigBear.ai (BBAI) continued a rally on Tuesday that saw its stock jump 14.25% during normal trading hours yesterday. This extended rally has BBAI stock up 7.48% as of this writing, which builds on its strong performance in 2024 with the stock having increased 124.77% year-to-date.
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The recent rallies for BBAI stock come alongside increased investor interest. That includes more than 76.09 million shares changing hands yesterday. Today’s movement has more than 5.5 million shares traded this morning. For comparison, the three-month daily average trading volume for BigBear.ai stock is roughly 23.21 million units.
What’s Behind the BBAI Stock Rally?
The rally of BigBear.ai stock started yesterday after H.C. Wainwright’s Scott Buck, a two-star analyst, increased his price target for BBAI shares. The analyst bumped BBAI stock up from a $3 price target to a $7 price target, representing a potential upside of 45.53%. That also came with a reiterated Buy rating for the shares. This is an incredibly bullish stance compared to other analysts covering the stock.
Another bit of BigBear.ai news that caught investor interest yesterday was the company terminating its secured credit facility with Bank of America (BAC). The company did so without any outstanding borrowings. At the same time, BigBear.ai exchanged $182.3 million in convertible senior notes due in 2026. It replaced these with 6% convertible senior secured notes due in 2029.
Is BBAI Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for BigBear.ai is Strong Buy based on three Buy and one Hold ratings over the last three months. With that comes an average price target of $4.33, a high of $7, and a low of $2.50. This represents a potential 9.98% downside for BBAI shares.
