AI Analyst Lowers BigBear.ai Price Target Despite Earnings Beat

BigBear.ai Holdings (BBAI) reported Q3 FY25 results that surpassed analyst expectations, even as revenue declined by 20% year-over-year to $33.1 million. The drop was attributed to reduced work on certain U.S. Army projects. Despite the revenue contraction, the figure exceeded the consensus estimate of $31.81 million. The company's net loss narrowed to $0.03 per share, outperforming both the anticipated $0.07 loss and the prior year's $0.06 loss, signaling improved cost management.

TipRanks' AI Analyst Mira Patchera, utilizing the OpenAI-4o model, maintained a Neutral rating on BBAI but reduced the price target to $5.50 from $6.00, implying a 9.24% downside from current levels. The AI-driven analysis assigned BBAI a score of 42 out of 100, reflecting weak financial performance and bearish technical indicators.

TipRanks' automated stock evaluation system combines insights from multiple models, including OpenAI's, to deliver data-driven assessments. The platform's ETF AI Analyst tool aims to enhance investment decision-making by providing concise snapshots of stock potential.