Cantor Fitzgerald Downgrades BigBear.ai Holdings (BBAI), Cites Pressured Near-Term Fundamentals

BigBear.ai Holdings Inc. (NYSE:BBAI) is one of the hidden AI stocks under $10 to buy. On January 7, Cantor Fitzgerald downgraded BigBear.ai from Overweight to Neutral and lowered the price target to $6 from $7. This sentiment was announced as the firm cited pressured near-term fundamentals.

The firm particularly noted a 20.1% year-over-year revenue decline in Q3 2025, resulting from federal program disruptions, and highlighted elevated execution risks due to the company’s reliance on inconsistent government contracts. These factors continue to drive operating losses and contribute to ongoing margin pressure for the organization.

In other news, earlier on December 31, BigBear.ai Holdings Inc. (NYSE:BBAI) completed its $250 million cash acquisition of Ask Sage, which is a GenAI platform designed for secure deployment in defense, intelligence, and regulated sectors. The acquisition builds on a previously announced agreement and integrates Ask Sage’s capabilities, which currently serve over 100,000 users across 16,000 government teams, into BigBear.ai’s existing AI portfolio.

BigBear.ai Holdings Inc. (NYSE:BBAI) provides AI-powered decision intelligence solutions. The company offers national security, supply chain management, and digital identity and biometrics solutions.

While we acknowledge the potential of BBAI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.