BTIG analyst Mark Massaro has initiated coverage on Tempus AI (TEM), with a Buy rating and a price target of $60, implying 48.3% upside potential. The analyst views TEM’s AI applications and data business as a “significant free call option for investors,” suggesting significant upside potential.
Importantly, Massaro noted TEM as a “rapidly growing precision medicine platform technology company” with an initial focus on the large and attractive oncology market. Further, Tempus’ expansion into new therapeutic areas and its focus on scaling operations have positioned it as a key player in the healthcare AI space.
Also, he highlighted the company’s early success in monetizing its genomics and data business by working with oncologists and pharmaceutical firms. The analyst said that Tempus has one of the largest molecular libraries of cancer patients, positioning the company as a potential leader.
Tempus AI’s Strategic Growth Moves
Tempus AI has entered deals to expand its precision medicine capabilities beyond cancer. Last week, Tempus teamed up with Illumina (ILMN) to use AI for better genomic studies. This partnership will mix Tempus’ data tools with Illumina’s AI to improve disease analysis, including heart and brain conditions.
Also, Tempus signed a long-term deal with Recursion (RXRX) to help create treatments using biomarkers or measurable indicators, like proteins or genes, that reveal biological conditions. Under this deal, Recursion will use Tempus’ large collection of anonymized data to speed up cancer drug research.
Overall, these partnerships strengthen Tempus’ role in precision medicine and open doors to new markets and growth.
Is TEM a Good Stock to Buy?
On TipRanks, TEM stock has a Moderate Buy consensus rating based on four Buys and five Holds assigned in the last three months. At $62.63, the average Tempus AI stock price target implies a 54.83% upside potential. Shares of the company have declined 15.1% over the past three months.
