BigBear.ai Secures $165 Million U.S. Army Contract Amidst Growing Portfolio
BigBear.ai (BBAI) announced on Monday that it has received a five-year, $165.15 million sole-source prime contract from the U.S. Army. This contract focuses on Global Force Information Management (GFIM) Production Services.
This latest contract builds on the partnership that began in 2021, during which BBAI worked to consolidate 15 legacy systems into an integrated intelligent automation platform. The new project aims to enhance the development and deployment of GFIM-OE capabilities.
The goal is to create a dynamic and interoperable system for managing global force structure and employment data. This will allow the U.S. Army to make better and more efficient decisions based on data.
Shares of BigBear.ai have surged 42.5% in the last year, outpacing the Zacks Computer & Technology sector’s growth of 38.7% and the Zacks Computers – IT Services industry’s increase of 30%.
BigBear.ai Holdings, Inc. Price and Consensus
BigBear.ai Holdings, Inc. price-consensus-chart | BigBear.ai Holdings, Inc. Quote
This increase can be linked to the growth of BBAI’s product range and its robust network of partners, both of which contribute to its development.
In August, BigBear.ai also secured a subcontract with Concept Solutions as part of a $2.4 billion Federal Aviation Administration Information Technology Innovative Procurement Strategic Sourcing contract, further reinforcing its position in the government sector.
With rising government investment in AI, BigBear.ai is well-positioned to expand its capabilities and meet the needs of a broader market.
Diverse Clientele Supports BBAI’s Growth
Focusing on a diverse product portfolio has allowed BigBear.ai to attract numerous clients, integrating its solutions with industry leaders such as Autodesk (ADSK), Amazon (AMZN), and Palantir (PLTR).
For instance, Autodesk has incorporated BBAI’s ProModel Discrete Event Simulator within its AutoCAD platform, facilitating easier simulations of complex systems.
Meanwhile, Amazon’s cloud service, Amazon Web Services (“AWS”), uses BBAI’s ProModel solution to enhance AI-driven warehousing services through AWS ProServe.
Palantir has integrated BBAI’s Observe, Orient and Dominate products into its Foundry platform, improving data collection and insights generation. The involvement of these market leaders highlights the reliability of BBAI’s product suite.
2024 Forecast for BBAI
While BigBear.ai is positioned as a leader in the AI field, it faces challenges like economic conditions and losses related to Virgin Orbit’s bankruptcy, which may hinder its revenue growth.
For fiscal 2024, BBAI anticipates total revenues between $165 million and $180 million.
The Zacks Consensus Estimate for revenues stands at $172.36 million, indicating an 11.08% year-over-year growth.
However, analysts project a loss of 79 cents per share for fiscal 2024, which reflects a significant decline of 97.5% compared to the previous year.
Should You Buy, Sell, or Hold BBAI Stock?
Currently, BBAI stock is considered relatively expensive, earning a Value Score of F, indicating a stretched valuation.
BigBear.ai holds a Zacks Rank #3 (Hold), suggesting that investors may want to wait for a better opportunity before purchasing the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
