BigBear.ai(BBAI) ZACKS·2025-02-11 17:36Core Viewpoint - BigBear.ai (BBAI) shares are currently overvalued, indicated by a Value Score of F, with a forward 12-month price/sales (P/S) ratio of 11.29X, significantly higher than its median of 2.10X and the sector's 6.57X [1][2]. Performance Analysis - BBAI shares have surged 332.1% over the trailing 12-month period, outperforming the Zacks Computer & Technology sector's return of 22.1% and the Computers - IT Services industry's rise of 8.6% [4]. - The company has outperformed industry peers such as DXC Technology, which saw a decline of 10%, and ServiceNow, which returned 29.4% during the same period [7]. Government Contracts and Growth - BBAI's growth is supported by securing key government AI contracts, including a contract from the Department of Defense to advance its Virtual Anticipation Network prototype, enhancing national security through AI analytics [9][10]. - The company also secured a prime contract under the U.S. Department of Navy's SeaPort Next Generation program, enabling it to deliver advanced AI-powered systems for federal applications [11]. Partnerships and Product Expansion - BBAI's expanding product portfolio has led to collaborations with major companies like Proof Labs, Autodesk, Amazon, and Palantir, indicating the quality of its product suite [12][14]. - A notable collaboration with Proof Labs aims to develop a Cyber Resilient On-Orbit solution for the Department of the Air Force, leveraging advanced technology for real-time cyber intrusion detection [13]. Financial Outlook - The Zacks Consensus Estimate for BBAI's 2025 revenues is $194.31 million, reflecting a year-over-year growth of 15.27% [16]. - The consensus for 2025 loss per share is estimated at 20 cents, indicating a year-over-year increase of 73.33% [17]. Conclusion - Despite its growth and strategic partnerships, BBAI faces intense competition in the AI market and a challenging macroeconomic environment, leading to a recommendation to hold the stock for now [18][19].