Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 7 Jun, 24 | BBAI | Speculative Buy | USD 1.36 | USD 1.47 | USD 1.65 | 13 days | 21.3% |
Data Powered by EOD Historical Data (“EODHD”).
BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services. It serves nation defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, travel, entertainment, and tourism sectors. The company is headquartered in Columbia, Maryland.
Improved Adjusted EBITDA: (USD 1.6) mn in Q1 FY24 vs (USD 3.8) mn in Q1 FY23
Lower SG&A Expenses: USD 13.6 mn in Q1 FY 24 vs USD 15.3 mn in Q1 FY 23
Lower Revenue: USD 33.1 mn in Q1 FY24 vs USD 42.2 mn in Q1 FY23
Higher Net Loss: USD 125.1 mn in Q1 FY24 vs USD 26.2 mn in Q1 FY23
Market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.36 | 1.25 | 1.47 | 1.65 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financials: BBAI received an USD 8.3 mn extension from USA Army to enchance their enterprise IT Capabilities.
Technical: 14 day period Relative Strength Index (RSI) value at 36.19, with expectations of an upward momentum from oversold levels.
Outlook: The company expects consolidated revenue of USD 195 mn to USD 215 mn for the financial year ended 31st December 2023.
Given the aforementioned factors, a "Speculative Buy" recommendation has been assigned on the closing market price at 1.36 as on 6 June 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Information Technology Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BBAI BigBearai Holdings Inc |
0.01 0.32% | 3.12 | - | - | 5.92 | 8.61 | 6.37 | -3.2576 |
| ACN Accenture plc |
-7.41 2.02% | 358.96 | 31.75 | 28.09 | 3.49 | 7.94 | 3.45 | 20.00 |
| IBM International Business Machines |
-0.535 0.24% | 222.82 | 20.85 | 16.29 | 2.43 | 6.44 | 3.21 | 13.87 |
| FI Fiserv, Inc. |
-1.65 0.80% | 204.40 | 28.20 | 15.58 | 4.24 | 2.70 | 5.45 | 13.13 |
| INFY Infosys Ltd ADR |
0.79 3.47% | 23.43 | 25.55 | 22.78 | 4.20 | 8.01 | 4.10 | 15.87 |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and target levels is June 06, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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