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Investing.com - BTIG raised its price target on Tempus AI Inc (NASDAQ:TEM) to $85.00 from $75.00 while maintaining a Buy rating following the company’s strong second-quarter performance. The stock has shown impressive momentum, delivering a 116.47% return year-to-date, according to InvestingPro data.
The healthcare technology firm, now valued at $12.82 billion, reported second-quarter results that exceeded expectations, with revenue beating estimates by 9%. This performance was driven by 36% year-over-year growth in data revenue and 33% year-over-year growth in core Tempus genomics revenue, contributing to an impressive overall revenue growth of 59.84% and maintaining a healthy gross profit margin of 60.73%.
Tempus AI’s Ambry Genetics hereditary testing business grew 34% year-over-year in the second quarter, outpacing the company’s deal model projections. Based on these results, Tempus raised its fiscal year 2025 revenue guidance by $10 million.
BTIG characterized the revised guidance as "conservative" given the expected increase in data services revenue during the second half of 2025, which will include contributions from a recently signed $200 million data deal with AstraZeneca (NASDAQ:AZN).
The research firm has initiated a 2027 revenue estimate of $1.85 billion for Tempus AI as part of its updated financial model for the company.
In other recent news, Tempus AI Inc. reported its second-quarter 2025 earnings, surpassing revenue expectations with a total of $314.6 million, compared to the forecast of $297.8 million. The company also reported a narrower-than-anticipated loss per share at -$0.22, against a projected -$0.25. These results were part of a series of developments for Tempus AI. TD Cowen raised its price target for the company to $72 from $62, maintaining a Buy rating, citing stronger genomic volumes and a positive outlook for the Ambry business. Meanwhile, Stifel maintained its Hold rating on the stock, with a price target of $65. These recent developments reflect a mix of positive performance and cautious optimism from analysts.
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