BigBear.ai (BBAI) stock experienced a significant jump after the company announced solid third-quarter earnings and its plan to acquire Ask Sage. In light of these results, Wainwright HC’s well-regarded analyst, Scott Buck, reiterated his “buy” rating on BBAI. Similarly, Cantor Fitzgerald’s five-star analyst, Jonathan Luicaver, also rates the stock as a “buy,” increasing his price target from $6 to $7. As of Tuesday, BBAI shares have risen by over 15%.
Introducing ETF AI Analysts
For some background, BigBear.ai’s revenue for the third quarter fell by 20%, totaling $33.1 million. However, this still surpassed analysts’ expected figure of $31.81 million. The company also recorded a net loss of $0.03 per share, which was better than the anticipated loss of $0.07. Coupled with these results, BigBear.ai disclosed its intention to buy Ask Sage, a generative AI platform aimed at secure defense and national security applications, in a deal valued at $250 million.
This positive performance and strategic growth initiative have sparked a renewed sense of optimism regarding BigBear.ai’s potential development as we look toward 2026.
Wainwright remains bullish on Sage Deal
Mr. Buck remains confident in his Buy rating on BBAI, primarily because of the Ask Sage acquisition, which is expected to enhance growth and fortify the firm’s defense and national security focus. He noted that the deal should improve margins and contribute to stable recurring revenue.
Although third-quarter outcomes were somewhat mixed, he pointed out that revenue exceeded expectations. He expressed that the company’s robust cash reserves provide good leeway for future acquisitions and growth opportunities. While there are short-term uncertainties, like the risk of a government shutdown, Buck holds a positive view on BigBear.ai’s long-term prospects, maintaining an $8 price target. He anticipates that the acquisition of Ask Sage will greatly improve results in 2026.
Buck’s $8 price target suggests an upside of over 20%.
Cantor Fitzgerald raises BBAI price target
LuiCover’s recently adjusted price target of $7 indicates a modest 6% potential increase from current levels. He noted that the decline in BigBear.ai’s revenue was largely attributed to disruptions in federal programs, including reduced volumes related to specific U.S. military contracts and complications arising from the government shutdown.
Despite these challenges, he kept a Buy rating, citing strong long-term growth trends in AI and increasing industry investments as reasons to remain optimistic about the stock.
Is BBAI a good stock to buy?
According to TipRanks, analysts have assigned a Moderate Buy consensus rating to BBAI, based on two Buy and one Hold recommendations over the past three months. The average price target for BigBear.ai stands at $5.83, suggesting a downside of around 10.45% from current levels.
