Tempus AI (TEM) rallied about 14% on Thursday, as the U.S. Food and Drug Administration (FDA) granted clearance for an upgraded version of its Tempus Pixel, a cardiac imaging platform. Tempus AI stock has rallied about 46% over the past month and 163% year-to-date, driven by expectations of solid growth potential from the AI-powered healthcare company.
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Tempus is focused on advancing precision medicine through the practical application of AI in healthcare.
TEM Secures FDA Nod for Tempus Pixel
Tempus AI disclosed that it has received 510(k) clearance from the U.S. FDA for its updated Tempus Pixel offering. Notably, Tempus Pixel provides advanced viewing and automated reporting of cardiac MR images, ensuring efficiency and accuracy.
The company explained that the update allows the generation of T1 and T2 inline maps, further enhancing Tempus Pixel’s capabilities for cardiac MR image analysis. Tempus AI considers the FDA’s clearance of its updated product as an important regulatory milestone that reinforces its commitment to advancing AI-driven imaging technology.
Last month, Tempus AI delivered market-beating second-quarter results and raised its full-year guidance. The company’s Q2 revenue jumped 90% year-over-year to $314.6 million, driven by a surge in its genomics business.
Is Tempus AI Stock a Good Investment?
Recently, H.C. Wainwright analyst Yi Chen initiated coverage of Tempus AI stock with a price target of $90. Chen noted that the company has demonstrated a track record of building a “strong healthcare technology business with impressive sales based on organic growth as well as complementary and synergistic acquisitions.”
Wall Street has a Moderate Buy consensus rating based on six Buys and six Holds. Given the year-to-date rally, the average TEM stock price target of $73.82 indicates a downside risk of about 17% from current levels.
