BigBear.ai Inc (NYSE:BBAI) shares are trading volatile Tuesday. Here’s a look at what’s going on.
What To Know: BigBear.ai on Tuesday announced its participation in Project Convergence – Capstone 5 (PC-C5), a combined joint and multinational experiment allowing partners and allies to integrate resources and technologies in support of defense transformation efforts.
The PC-C5 experiment allowed multinational forces to test Next Generation Command Control (NGC2) systems. BigBear.ai said its Virtual Anticipation Network (VANE) platform helped forces gain situational awareness and identify emerging threats in the tests.
“BigBear.ai is proud that VANE continues to demonstrate operational value in real-world exercises and experiments like PC-C5, involving forces from multiple nations,” said Ryan Legge, president of national security at BigBear.ai.
“These environments validate the critical role AI plays in supporting faster, more accurate decision-making for warfighters.”
HC Wainwright & Co. analyst Scott Buck maintained BigBear.ai with a Buy rating on Tuesday and raised the price target from $6 to $9, citing strong business momentum.
BigBear.ai stock is up approximately 52% year-to-date. Buck noted that the momentum in shares is being driven by new customers and contracts combined with strong secular trends in AI defense and security. The analyst said the company’s products are resonating across key growth verticals and highlighted the company’s backlog of $384.9 million as of the first quarter.
The HC Wainwright & Co. analyst also noted that the company’s balance sheet provides opportunities to pursue M&A that could drive revenue growth and create a faster path to profitability.
“This positive momentum gives us greater confidence in our 2025 and 2026 revenue expectations and warrants an expansion in our valuation multiple to 12.0x from 10.0x,” Buck said in a note to clients.
BBAI Price Action: BigBear.ai shares were initially trading up but reversed 1.94% to $6.66 at the time of publication Tuesday, according to Benzinga Pro.
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