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Investing.com - H.C. Wainwright initiated coverage on Tempus AI Inc (NASDAQ:TEM) with a Buy rating and a $90.00 price target on Tuesday. The stock, currently trading at $75.86, has demonstrated remarkable momentum with a 124.7% year-to-date return. According to InvestingPro data, analyst targets for the stock range from $60 to $85.
The research firm cited Tempus AI’s position as a commercial-stage technology company focused on advancing precision medicine through artificial intelligence applications in healthcare. According to management data referenced by H.C. Wainwright, the company houses one of the world’s largest libraries of multimodal healthcare data. With a market capitalization of $13.18 billion and impressive gross margins of 60.73%, the company has established a significant presence in the healthcare technology sector. Get deeper insights into Tempus AI’s financial health and growth metrics with InvestingPro.
Tempus AI’s revenue is expected to reach $1.26 billion in 2025, representing approximately 82% year-over-year growth, according to company management figures cited in the research note.
The company operates through two main segments: Genomics, which provides next-generation sequencing diagnostics and molecular pathology testing, and Data and Services, which offers de-identified healthcare data libraries and analytical tools to pharmaceutical and biotechnology companies for research and development.
H.C. Wainwright noted that Tempus AI "has shown a track record of building a strong healthcare technology business with impressive sales based on organic growth as well as complementary and synergistic acquisitions."
In other recent news, Tempus AI reported strong second-quarter results, with revenue surpassing estimates by 9%. The company’s performance was bolstered by a 36% year-over-year increase in data revenue and a 33% rise in core Tempus genomics revenue. In a strategic move, Tempus AI acquired Paige, a digital pathology firm, for $81.25 million. This acquisition will be settled mainly in Tempus common stock and grants access to Paige’s extensive dataset of nearly 7 million digitized pathology slide images.
Analysts have reacted positively to these developments, with BTIG raising its price target for Tempus AI to $85, maintaining a Buy rating. Similarly, TD Cowen increased its price target to $72, also maintaining a Buy rating, citing stronger genomic volumes and a favorable outlook for the company’s Ambry business. Meanwhile, Stifel has maintained its Hold rating on the stock, keeping the price target at $65. Additionally, Tempus AI filed a prospectus supplement with the SEC for the potential resale of up to 1.27 million shares of its Class A common stock by certain stockholders. These recent developments highlight Tempus AI’s ongoing growth and strategic initiatives in the healthcare technology sector.
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