Columbia-based AI and data analytics service BigBear.ai’s stock dropped 3.4% on Wednesday as major analysts revised their ratings to hold. The analysts’ action followed as a cumulative effect of multiple factors, including a 20.1% revenue dip, volatile government contracts, and law firm probes into possible security issues.
BigBear’s stock saw a massive 103% growth in 2025 as the company expanded to security and engineering consulting for the government and defense clients. It has also taken on several miscellaneous AI solutions, including biometric security and simulation. Yet, investor confidence has been shaken as the headlines don’t match the numbers.
Current Analyst Ratings for BigBear.ai
Here is the current analyst’s rating and target price for BigBear stocks:
| Brokerage | Analyst | Current Rating | Price Target | Upside / Downside | Previous Rating | Previous Price Target |
|---|---|---|---|---|---|---|
| Cantor Fitzgerald & Company | Jonathan Ruykhaver | Hold | $6 | -4.91% | Strong Buy | $7 |
| Northland Capital Markets | Michael J Latimore | Hold | $5 | -20.76% | Hold | $3.50 |
| H.C. Wainwright & Company | Scott Buck | Strong Buy | $8 | +26.78% | Strong Buy | $9 |
Cantor Fitzgerald & Company has revised its strong buy rating and issued a hold as they project a 4.91% downside. They have also reduced the target price to $6 from $7. This makes the target price less than the current price of $6.09.
Northland Capital Markets’ top analyst, Michael J Latimore, predicts a debacle for BigBear as he sees a 20.76% downside, driving the target price all the way down to $3.5. The analyst’s ratings have played a role in today’s 3.4% dip.
Pomerantz Law Firm Probe Risk
Pomerantz is one of those firms that jump on any stock that takes a dip, followed by hype. Since BigBear has shown a similar pattern, the law firm is scrutinizing the firm to see if there are grounds for a class action lawsuit based on possible security issues. This is a fatal blow to the company that’s already struggling with waning revenue.
If Pomerantz’s investigation finds evidence against the company executives for hiding bad news and exaggerating the scope of contracts achieved by the company, it can lead the firm to serious legal troubles. Pomerantz has a track record of winning similar class action lawsuits and squeezing hundreds of millions of dollars from companies.
Behind BigBear’s Revenue Dip
BigBear currently has a market capitalization of $2.66 billion and a revenue estimate of $33.32 million. The firm’s revenue fell 18% YoY in Q2 2025 and 20.15% YoY in Q3 2025. The upper management has previously blamed slow-moving government contracts for the revenue dips. Although a major share of its revenue comes from the U.S. government contracts, the dependence has backfired due to delays in the same.
BigBear’s acquisition of a smaller AI company, Ask Sage, for $250 million has also strained the company’s cash flow, paving the way for issues in the company’s internal management. All of these issues combined have led to the current crisis. BigBear’s analyst ratings are less likely to change in the absence of significant revenue improvements.
