Why BigBear.ai Stock Popped Today

BigBear.ai, Inc. BBAI shares are trading higher Tuesday. HC Wainwright initiated coverage on the stock with a Buy rating and a $4 price target. 

What To Know: HC Wainwright & Co. analyst Scott Buck believes the company is positioned ro be a leader in the field of AI-driven data analytics,citing expected revenue acceleration and an operating environment with secular tailwinds.

Buck expects an acceleration in revenue growth starting in 2024. The analyst cited the company's existing backlog, exceeding $206.0 million, as well as recent contract acquisitions such as with L3Harris Technologies, Inc.

BigBear.ai's customer portfolio also includes the U.S. Army, Department of Homeland Security and the CIA, allowing the company to grow operations and cross-sell further product capabilities.

Buck says improved operating leverage could drive profitability as early as the fourth-quarter 2024 and possible full year profitability in 2025..

Among the risks listed by the analyst were industry competition and the potential of dilution caused by the raising of additional capital.

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BBAI Price Action: Shares of BBAI were up 18.3% at $1.62 at the time of publication, according to Benzinga Pro.

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