BigBear.ai Holdings (BBAI) stock was down 15% in Tuesday’s trading session, as the artificial intelligence (AI)-powered data analytics company reported dismal second-quarter results and lowered its full-year revenue guidance. Despite the pullback, Cantor Fitzgerald’s top analyst Jonathan Ruykhaver maintained a Buy rating on BBAI and raised the price target to $6 from $5 per share. The 5-star analyst believes that although BBAI’s Q2 results show near-term challenges, the company’s solid long-term growth prospects and improved financial strength continue to support his Buy rating.
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It is worth noting that Ruykhaver ranks 70 out of more than 9,900 analysts tracked by TipRanks. He has a success rate of 64%, with an average return per rating of 24.9% over a one-year timeframe.
Why Is the Top Analyst Bullish on BBAI Stock?
Ruykhaver acknowledged that BigBear.ai’s Q2 results were weak, with revenue down 18.4% year-over-year to $32.5 million, missing expectations. The drop was mainly due to delays in federal programs, especially the U.S. Army’s efforts to consolidate its data systems, which slowed spending temporarily.
Despite these issues, the analyst noted solid progress in key areas. The company improved its core products and strengthened its finances. The backlog—the amount of work lined up—increased 42.9% year-over-year to $380 million, signaling healthy demand and revenue visibility in future periods.
On the guidance front, Ruykhaver noted that BigBear.ai lowered its full-year 2025 revenue forecast to $125 million–$140 million and withdrew its prior Adjusted EBITDA guidance, which had projected a small loss, indicating more caution on near-term profits.
Looking ahead, Ruykhaver remains optimistic about the company’s long-term outlook. He believes market trends and improved financial flexibility will help BigBear.ai overcome current challenges and grow steadily.
Overall, he sees the growing backlog and ongoing initiatives as strengths that support keeping an Overweight rating and raising the price target.
Is BBAI Stock a Good Buy?
Currently, Wall Street has a Moderate Buy consensus rating on BigBear.ai Holdings stock based on two Buy and one Hold ratings. The average BBAI stock price target of $7.00 indicates about 17.25% upside potential from current levels.
