William Blair analyst Louie DiPalma has reiterated their neutral stance on BBAI stock, giving a Hold rating today.
Louie DiPalma has given his Hold rating due to a combination of factors impacting BigBear.ai Holdings. The company’s first-quarter results fell short of consensus expectations, with revenue slightly below projections and adjusted EBITDA significantly underperforming. Despite these challenges, BigBear.ai has managed to secure notable contracts, including a $165 million agreement with the U.S. Army and a $13.2 million contract with the Department of Defense, which could bolster future performance.
Furthermore, BigBear.ai has made strides in improving its financial stability by enhancing its cash position and reducing debt. The reiteration of its 2025 guidance reflects a steady outlook, but the current financial metrics and market performance suggest a cautious approach. The company’s ongoing partnerships and strategic initiatives show promise, yet the immediate financial results warrant a Hold rating as investors await more consistent performance improvements.
In another report released today, Northland Securities also maintained a Hold rating on the stock with a $3.50 price target.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BBAI in relation to earlier this year.