William Blair initiated research coverage of BigBear.ai Holdings, Inc. (BBAI $5.20), a provider of data analytics and IT solutions for the U.S. government. BigBear went public via a merger with the GigCapital4 SPAC in December 2021.
“BigBear’s data analytics software is used as the engine for high-profile U.S. Army and Intelligence Community programs,” Suri said. “Half of BigBear’s revenue comes from data analytics and the other half comes from cyber, IT, and engineering services. BigBear’s Observe, Orient, and Dominate data platform is used by the Army, Defense Intelligence Agency, and Joint Chiefs of Staff. On a daily basis, BigBear’s software ingests over 600 million pieces of data and generates more than 6 million predictions for 100,000-plus users.”
DiPalma said, “The government has recently awarded a multitude of data analytics contracts to modernize outdated systems. The proliferation of structured and unstructured data from social media, drones, and satellites has resulted in information overload for the U.S. DoD, and the government is looking to upgrade its systems to automate analysis. We estimate there is a $26 billion total addressable market for U.S. government data analytics growing at 7% per year. A potential win for BigBear over Palantir for the Global Force Management program could act as a springboard for other significant deals, with a $4.5 billion near-term pipeline of opportunities across government and commercial verticals. BigBear intends to invest aggressively in its salesforce to pursue commercial opportunities.”
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Current Ratings Distribution (as of 2/8/22)
Outperform (Buy): 77%
Market Perform (Hold): 22%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 31%
Market Perform (Hold): 7%
Underperform (Sell): 0%
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