This AI-focused health stock is a buy that can rally nearly 50%, BTIG says
Precision medicine company Tempus AI is at “the intersection of multiple megatrends,” according to BTIG. Analyst Mark Massaro initiated coverage on the stock with a buy rating. His price target of $60 implies shares climbing 48.3% from Thursday’s close. The company uses generative artificial intelligence for diagnostic services primarily for cancer, but is working to scale up its services on other diseases such as cardiology. Tempus could also expand its services to include companion diagnostics and more personalized drug development, according to Massaro. TEM YTD mountain TEM year to date “Tempus possesses one of the largest molecular libraries of cancer patients in the world, and aims to be one of very few companies to monetize it. We believe the company’s AI applications (algos) and data business represent a significant free call option for investors,” Massaro wrote in a note on Monday. The company, which was founded nearly a decade ago, has hit $1 billion in revenue quicker than any other precision oncology lab company, per the analyst. He noted that Tempus guided for 30% year-over-year revenue growth from its core business this year. Year to date, shares have jumped nearly 20%. That said, analysts are somewhat split on the stock. Of the 11 who cover Tempus, five have a buy or strong buy, while another six rate it as a hold, per LSEG. The average analyst price target, meanwhile, implies upside of more than 50%. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
Source – CNBC
