Rainbows and Unicorns: BigBear.ai Holdings, Inc. (NYSE:BBAI) Analysts Just Became A Lot More Optimistic – Yahoo Finance

author
2 minutes, 51 seconds Read

BigBear.ai Holdings, Inc. (NYSE:BBAI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for BigBear.ai Holdings from its six analysts is for revenues of US$203m in 2024 which, if met, would be a major 31% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 23% to US$0.21 per share. However, before this estimates update, the consensus had been expecting revenues of US$174m and US$0.26 per share in losses. We can see there’s definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year’s revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for BigBear.ai Holdings

earnings-and-revenue-growthearnings-and-revenue-growth

earnings-and-revenue-growth

The consensus price target rose 19% to US$4.00, with the analysts encouraged by the higher revenue and lower forecast losses for this year.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It’s clear from the latest estimates that BigBear.ai Holdings’ rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.1% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that BigBear.ai Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around BigBear.ai Holdings’ prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, BigBear.ai Holdings could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in – you should know that we’ve spotted 5 potential warning signs with BigBear.ai Holdings, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other warning signs we’ve identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

This post was originally published on this site

Similar Posts