In a report released yesterday, Daniel Brennan from TD Cowen maintained a Buy rating on Tempus AI, Inc. Class A, with a price target of $72.00.
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Daniel Brennan has given his Buy rating due to a combination of factors, including Tempus AI, Inc.’s strong performance in the second quarter and the promising outlook for its Genomics and Ambry segments. The company demonstrated impressive revenue growth, particularly in the Genomics sector, where volume and revenue growth exceeded expectations. This positive trend is supported by market share gains and the overall growth of the market, although at a slightly slower pace than the second quarter.
Additionally, the AI Applications segment, which is currently more focused on Pharma demand, showed robust performance, contributing to the company’s unique position in the Oncology testing market. Despite some concerns about the lack of quarterly bookings disclosure and reliance on specific relationships for growth, the overall business model, including data licensing and AI capabilities, remains compelling. The updated price target of $72 reflects these factors, indicating a 9% upside potential from the recent market close, which supports the Buy rating.
Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Thermo Fisher, and Avantor. According to TipRanks, Brennan has an average return of 9.9% and a 46.54% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $68.00 price target.