William Blair analyst Andrew Brackmann has reiterated their neutral stance on TEM stock, giving a Hold rating today.
Andrew Brackmann has given his Hold rating due to a combination of factors related to Tempus AI, Inc.’s recent performance and future outlook. The company’s fourth-quarter results were aligned with expectations, showing consistent revenue and AEBITDA loss figures. Although the 2025 guidance was slightly increased, it remains achievable, and the company has a promising long-term revenue growth potential.
However, the stock’s recent decline in aftermarket trading indicates concerns about the timing of the revenue guidance, which is more weighted towards the latter half of the year, and uncertainties about the long-term growth of the data business. Additionally, the current valuation, which is about ten times the projected 2025 revenue, appears fair and suggests that much of the potential is already reflected in the stock price. Therefore, while the long-term outlook is positive, the current market conditions and valuation justify a Hold rating.
According to TipRanks, Brackmann is a 2-star analyst with an average return of -0.8% and a 28.57% success rate.
In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $55.00 price target.