BigBear.ai’s AI Boom: Why Analysts See More Upside in 2024

BigBear.ai (BBAI) stock got a big boost on Thursday as the company announced it’s newest leader.

After the close on Wednesday, BigBear.ai appointed Kevin McAleenan as its new CEO, effective immediately.  McAleenan succeeds Mandy Long, who is stepping down from the CEO position.

Kevin McAleenan currently served as BigBear.ai's President and has deep government and business experience working with U.S. national security agencies.  McAleenan served as Acting Secretary of the U.S. Department of Homeland Security (DHS) during the first Trump administration before founding Pangiam which was subsequently bought by BigBear.ai in 2024.

BigBear.ai is a technology company specializing in artificial intelligence (AI), data analytics, and decision intelligence solutions.

The company’s predictive analytics, machine learning, and AI-driven insights to help businesses and government agencies make informed decisions.

Bigbear.ai serves industries such as defense, logistics, and healthcare, offering tools for risk assessment, automation, and strategic planning.  By leveraging AI, BigBear.ai enhances situational awareness, optimizes operations, and improves decision-making in complex environments.

In December, Bigbear.ai saw upgrades from Wall Street analysts as the company has earned recognition for its growth in 2024.

In Late 2024, bigbear.ai 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.

Shares of BBAI are trading more than 120% higher over the last year despite being 20% below the stock’s December highs.

Last week’s “Risk Off” selling among AI, quantum computing and other “discovery” stocks resulted in a 42% decline from BBAI’s recent highs.

Since then...

The stock has recovered half of those losses on its way back to $5.00.

A rally back to, and above $5 would put Bigbear.ai in a new trading universe for the first time since 2022.  Shares of stocks that trade above $5.00 often see an increase in buying interest as institutional traders are often barred from sub-$5 stocks.

From a long-term perspective, Bigbear.ai shares transitioned into a new bull market trend in November 2024 as the stock moved above its 20-month moving average.  The stock had been in a bear market since 2022.

From a short-term perspective, investors should expect to see BBAI stock trade with high volatility as it approaches $5 and above with a target of $7.50.

  

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