Daniel Brennan, an analyst from TD Cowen, maintained the Buy rating on Tempus AI, Inc. Class A (TEM – Research Report). The associated price target remains the same with $74.00.
Daniel Brennan has given his Buy rating due to a combination of factors that highlight Tempus AI, Inc.’s promising growth prospects. The company’s revenue guidance for 2025 is slightly above previous expectations, suggesting confidence in its core business and the recently acquired Ambry. Despite some challenges, such as lower genomic volumes, the company has shown strength in pricing, particularly with its AI-supported Insights business.
Moreover, Tempus AI’s strategic initiatives, including the migration of genomic testing to a higher-priced FDA-approved assay, are expected to enhance revenue. The recent performance of newly hired sales representatives also positions the company well for future growth. While the EBITDA margin guidance for 2025 is slightly below estimates, the overall financial outlook remains positive, supporting the Buy rating.