TD Cowen analyst Daniel Brennan reiterated a Buy rating on Tempus AI, Inc. Class A (TEM – Research Report) today and set a price target of $74.00.
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Daniel Brennan’s rating is based on the recent acquisition of Ambry by Tempus AI, Inc., which has several strategic advantages. The acquisition enhances Tempus’s product offerings and expands its market reach, providing a pathway to positive free cash flow. Ambry’s established reputation in germline testing and its contribution to revenue growth and profitability are significant factors in this decision.
Furthermore, the acquisition allows Tempus to integrate Ambry’s data into its own, potentially enhancing its three main business segments and creating opportunities for product expansion. Despite Ambry’s slower growth compared to Tempus’s initial projections, the acquisition is expected to accelerate Tempus’s profitability and offers potential synergies that outweigh the integration risks. The increase in the price target to $74 reflects these positive expectations.
According to TipRanks, Brennan is a 5-star analyst with an average return of 14.4% and a 49.29% success rate. Brennan covers the Healthcare sector, focusing on stocks such as Exact Sciences, Natera, and Revvity.