Canaccord Genuity reiterates Buy rating on Tempus AI stock with $110 target

Investing.com - Canaccord Genuity has reiterated its Buy rating on Tempus AI Inc (NASDAQ:TEM) with a price target of $110.00, according to a research note released Monday. The target represents significant upside potential from the current price of $87.78, with the stock already showing remarkable momentum, having gained 160% year-to-date. InvestingPro data reveals that 5 analysts have recently revised their earnings expectations upward for the upcoming period.

The firm maintains its positive outlook on the oncology testing company, which specializes in genomic profiling, data services, and artificial intelligence applications in healthcare.

Canaccord Genuity’s analysis suggests that AI deployment at scale in clinical practice could drive strong long-term revenue growth for Tempus AI.

The research note highlights Tempus AI’s acquisition strategy, including the Ambry purchase, as potentially accelerating growth by expanding testing capabilities and enhancing AI functionalities.

Canaccord’s discounted cash flow model for Tempus AI incorporates a 10-year revenue compound annual growth rate of 22.8%, a peak operating margin of 45.6%, and a discount rate of 15.0%.

In other recent news, Tempus AI, Inc. announced it has received 510(k) clearance from the U.S. Food and Drug Administration for its RNA-based Tempus xR IVD device. This device, designed for use by healthcare professionals, will aid in drug development programs by detecting gene rearrangements in tumor tissues. In a related development, Guggenheim raised its price target for Tempus AI to $95.00 from $80.00, maintaining a Buy rating, following discussions about Tempus AI’s collaboration with AstraZeneca and Pathos AI on an oncology AI model. Additionally, Whitehawk Therapeutics Inc. entered a multi-year collaboration with Tempus AI to enhance biomarker-driven research in oncology, utilizing Tempus’ real-world dataset. This partnership aims to refine clinical trial designs for antibody drug conjugates in cancer treatment. Meanwhile, Ambry Genetics, a Tempus AI subsidiary, updated its CARE Program to include breast density in the Tyrer-Cuzick breast cancer risk assessment model, aiming to improve risk estimates and screening recommendations. These developments highlight Tempus AI’s continued efforts in advancing precision medicine and oncology research.

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