Patrick Wood, an analyst from Morgan Stanley, maintained the Buy rating on Tempus AI, Inc. Class A. The associated price target is $68.00.
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Patrick Wood’s rating is based on several compelling factors that highlight Tempus AI, Inc.’s strong performance and growth potential. The company has shown impressive results in the second quarter, driven by increased volumes in oncology testing, gains in hereditary market share, and robust growth in their Insight segment. Tempus AI’s extensive laboratory infrastructure and comprehensive genomics offerings position it well for continued expansion, differentiating it from its peers in the diagnostics sector.
Furthermore, the strategic acquisition of Ambry is seen as a positive move, enhancing Tempus AI’s capabilities in oncology and accelerating its path to free cash flow and EBITDA breakeven. The company also benefits from multiple avenues for growth, including anticipated increases in average selling prices and volumes from the MRD launch, as well as broader reimbursement opportunities. Additionally, the substantial backlog in their Data & Services platform, bolstered by significant deals, provides visibility and momentum for sustained business growth in the coming years.
In another report released on August 8, Guggenheim also reiterated a Buy rating on the stock with a $75.00 price target.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TEM in relation to earlier this year.