BigBear.ai Downgraded Amid Revenue Decline and Legal Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 Jan 26
Source: PRnewswire
BigBear.ai's stock fell by 5.07% as it crossed below the 5-day SMA, reflecting investor concerns following a downgrade from Cantor analysts.
The downgrade was prompted by a reported 20% year-over-year revenue decline in Q1 2026, leading to ongoing operating losses and margin pressure. Cantor downgraded BigBear from Overweight to Neutral, citing increased execution risks that could affect future performance and investor confidence. Additionally, Pomerantz LLP is investigating potential securities fraud, which could further impact the company's reputation.
This downgrade and the ongoing investigation highlight significant challenges for BigBear.ai, raising questions about its future growth and stability in a competitive market.
Analyst Views on BBAI
Wall Street analysts forecast BBAI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBAI is 6.33 USD with a low forecast of 5.00 USD and a high forecast of 8.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 5.520
Low
5.00
Averages
6.33
High
8.00
Current: 5.520
Low
5.00
Averages
6.33
High
8.00
About BBAI
BigBear.ai Holdings, Inc. is a provider of artificial intelligence (AI)-powered decision intelligence solutions for national security, supply chain management and digital identity. The Company is a technology-led solutions organization, providing both software and services to its customers. It combines subject-matter expertise with technology to connect the enterprise, provide insights on process performance and recommendations for managing risk. It offers computer vision, anomaly/event detection, and descriptive and predictive analytics to support operations and break down silos between vendors and systems. The Company’s customers span the public and private sector, including the United States defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, as well as travel, entertainment and tourism. It also offers software assets that are tailored for digital identity and biometrics, leveraging advanced vision AI technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
