- Several analysts kicked off coverage of Tempus AI with bullish comments, anticipating gains from its applications of artificial intelligence (AI) in healthcare.
- The healthcare tech company, which uses AI to provide personalized medical solutions for oncology, began publicly trading in June.
- William Blair analysts said Tempus has “compelling revenue growth” with a path to profitability.
- Stifel and Bank of America analysts highlighted the company’s unique position to gain from integrating AI into healthcare.
Several analysts have initiated coverage of Tempus AI (TEM) with optimistic forecasts, citing the biotech company’s innovative use of artificial intelligence (AI) in healthcare. William Blair and J.P. Morgan assigned an “overweight” rating, with J.P. Morgan setting a price target of $42.12. Bank of America and Stifel both rated Tempus a “buy,” with price objectives of $41 and $45.34, respectively.
Despite an initial surge, Tempus shares were down 1% at $33.54 by 2:20 p.m. ET. The stock, which started trading in June, has dropped about 10% from its IPO price of $37.
Analysts highlighted Tempus’ potential to benefit from AI and healthcare innovation. The company, backed by Alphabet’s Google, boasts a vast library of multimodal data and AI-enabled precision medicine solutions. Stifel noted Tempus’ strong positioning in personalized genetic and clinical information within oncology, with potential expansion into other areas.
William Blair projected Tempus’ revenue growth to outperform industry peers, while Bank of America emphasized the timely integration of AI into healthcare.
