One of the few bright spots in the market on Monday was a handful of AI-related stocks. The positive performance was led by shares of BigBear.ai (BBAI).
BBAI shares jumped 15% on strong volume as the stock nears a close above $5.
The surge in price and volume comes on news that H.C. Wainwright has raised their BBAI Target price to $7 from $3.
The new price target doubles the previous high target for BBAI shares. Wall Street’s current average target price remains at $2.63, roughly 50% lower than the stock’s current asking price.
H.C. Wainwright’s analyst commented that “increasing demand for the company's AI-enabled services across multiple sectors” had helped them raise their target price.
“This includes recently announced participation on the U.S. General Services Administration's OASIS+ Unrestricted Multiple Agency Contract. The award includes 75 contract line-item numbers across five key domains, which highlight BigBear's breadth of capabilities.”
BigBear.ai (BBAI) specializes in AI-driven data analytics and decision-support solutions for industries like defense, healthcare, and logistics.
The company provides predictive analytics and decision intelligence tools to help organizations optimize operations, predict outcomes, and mitigate risks.
BigBear.ai primarily serves U.S. government agencies, including the Department of Defense, and commercial enterprises, enabling data-driven decisions in high-stakes, complex environments.
Shares of BigBear.ai have more than doubled in the last two months as investors are now discovering the AI service company.
Shares of AI service industry stocks have been outpacing the foundational AI companies like NVIDIA and AMD as investors shift their focus to how AI service companies will use the technology to generate revenue.
BigBear.ai stock is trading above its significant technical trendlines, all of which are in bullish trends.
BBAI stock maintains a bullish outlook with a price target of $8.00.
