BigBear.ai (BBAI) stock rallied by over 16% on Monday, driven by investor optimism about artificial intelligence (AI) stocks with exposure to defense contracts. Moreover, investors are bullish on BBAI’s growth prospects due to the contracts recently announced by the company. BigBear.ai offers AI-powered decision intelligence solutions for national security, defense, travel and trade, and supply chains. BBAI stock has rallied by an impressive 52.6% so far in 2025 and 350% over the past year. The stock was up 5.2% in Tuesday’s pre-market trading.
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Investors Are Bullish on BigBear.ai’s Recent Deals
BigBear.ai recently announced lucrative deals that reinforce the strong demand for its AI-powered decision intelligence solutions. The company announced multiple deployments of its biometric software for Enhanced Passenger Processing (EPP) at key international airports and ports of entry. This software is developed by the company’s Pangiam unit.
Furthermore, BigBear.ai announced a strategic partnership with Easy Lease PJSC and Vigilix Technology Investment L.L.C. to advance the United Arab Emirates’ (UAE) AI capabilities and deliver mission-critical systems.
BigBear.ai’s backlog at the end of Q1 2025 rose by 30% year-over-year to $385 million. Looking ahead, the company aims to boost its growth through international expansion and attractive deals, while continuing to secure government business.
Is BBAI Stock a Good Buy?
Despite the AI hype, Wall Street is divided on BigBear.ai Holdings stock due to concerns over a low revenue growth rate and steep valuation. Overall, BBAI stock scores a Moderate Buy consensus rating based on two Buys and two Holds. The average BBAI stock price target of $4.83 indicates a potential downside of about 29% from current levels.
