In a report released today, Ryan MacDonald from Needham reiterated a Buy rating on Tempus AI, Inc. Class A (TEM – Research Report), with a price target of $70.00.
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Ryan MacDonald has given his Buy rating due to a combination of factors including Tempus AI’s strong financial performance and strategic advancements. The company reported first-quarter results that surpassed market expectations in both revenue and adjusted EBITDA, which reinforces confidence in its financial health.
Additionally, Tempus AI’s Genomics business is progressing well with its transition to a higher-priced CDx offering, and its recent acquisition of Ambry has outperformed initial growth projections. In the Data segment, the Insights division is driving growth, and a significant deal with AZ has pushed the total contract value over $1 billion, suggesting potential for further revenue increases. Despite some investor concerns about the lack of an EBITDA guidance increase, MacDonald sees substantial growth opportunities for Tempus AI, justifying continued investment.
In another report released on April 28, BTIG also maintained a Buy rating on the stock with a $60.00 price target.