Investment company HC Wainwright has raised its price target for BigBear.AI Holdings (NYSE: BBAI) from $6.00 to $9.00 with repeated purchase ratings, citing strong performance, robust backlog and favorable positioning in the artificial intelligence defense and security sector.
The company highlighted an impressive 52.6% increase in stock in the first half of 2025, significantly surpassing the Russell 2000 Index, which fell 2.5% over the same period. Bigbear.ai, which currently costs around $2 billion, has skyrocketed over 365% over the past year, according to data from InvestingPro.
This momentum is driven by new customer acquisition, strategic partnerships and contractual victory, including the deployment of biometric software at 12 international airports and ports of entry, and collaboration with the UAE and the US Defense Initiative. The company reported revenue of $34.8 million for the first quarter of 2025 (4.9% year-on-year), maintaining a backlog of $384.9 million, up 30.1% from last year.
HC Wainwright has expanded the valuation multiple of BigBear.AI from 10.0 to 12.0 times, citing a strong foundation that can support future acquisitions and recent balance sheet improvements. However, the company noted that its current price target is below the company's 52-week high of $10.36, leaving room for potential benefits.
Despite the outlook, Cantor Fitzgerald offered a more cautious perspective, reducing its 12-month price target to $5.00 due to macroeconomic concerns, and still maintaining its overweight rating.
In Executive News, Shawn Ricker has been appointed interim CFO after Julie Peffer left office.
Bigbear.ai Project 2025 revenue growth was between 1.1% and 13.7%, continuing to grow in the application of AI technology across defense, security, and international infrastructure.
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