BigBear.ai (BBAI) stock jumped after the company reported strong Q3 earnings and announced the acquisition of Ask Sage. Following the results, top-rated analyst Scott Buck at H.C. Wainwright reaffirmed his Buy rating on BBAI. Meanwhile, Cantor Fitzgerald’s five-star-rated analyst Jonathan Ruykhaver raised his price target from $6 to $7 with a Buy rating. BBAI stock is up over 15% as of this writing on Tuesday.
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For context, BigBear.ai’s Q3 revenue fell 20% to $33.1 million but surpassed analyst estimates of $31.81 million. The company also reported a net loss of $0.03 per share, better than the expected loss of $0.07 per share. Along with its earnings, BigBear.ai announced plans to buy Ask Sage, a generative AI platform for secure defense and national security use, in a $250 million deal.
The upbeat results and strategic expansion have sparked renewed optimism about BigBear.ai’s growth prospects heading into 2026.
Wainwright Stays Bullish on Ask Sage Deal
Buck reaffirmed his Buy rating on BBAI mainly on the acquisition of Ask Sage, which should boost growth and strengthen its focus on the defense and national security sectors. He highlighted that the deal is expected to improve profit margins and add meaningful recurring revenue.
He added that while Q3 results were mixed, revenue topped expectations, and the company’s solid cash reserves provide flexibility for future acquisitions and growth. Despite short-term risks such as the government shutdown, Buck remains confident in BigBear.ai’s long-term prospects, maintaining his $8 price target and expecting the Ask Sage acquisition to meaningfully boost 2026 performance.
Buck’s price target of $8 implies an upside of over 20%.
Cantor Fitzgerald Ups BBAI Price Target
Ruykhaver’s new price target of $7 implies a modest upside of 6% from current levels. He explained that BigBear.ai’s revenue decline was mainly due to disruptions in federal programs, including lower volumes on certain U.S. Army contracts and challenges from the government shutdown.
Nonetheless, he maintained his Buy rating, pointing to strong long-term AI growth trends and rising industry investment as reasons to stay bullish on the stock.
Is BBAI a Good Stock to Buy?
On TipRanks, analysts have a Moderate Buy consensus rating on BBAI stock, based on two Buys and one Hold assigned in the last three months. The average BigBear.ai share price target is $5.83, which implies a downside of 10.45% from current levels.
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