Several Wall Street analysts have expressed positive views of TempusAI, a biotechnology company that applies artificial intelligence (AI) to the medical care field, predicting sustained revenue growth.
According to the Financial Intelligence APP, several Wall Street analysts have expressed positive views of TempusAI (TEM.US), a biotechnology company that applies artificial intelligence (AI) to the medical care field, predicting sustained revenue growth. William Blair and JPMorgan analysts gave TempusAI's shares a "shareholding" rating, with the latter setting a target price of $42 for Tempus. Meanwhile, Bank of America rated the stock "buy" with a target price of $41, and Stifel also rated Tempus as "buy" with a target price of $45.
On Tuesday, TempusAI's stock price surged and closed up 3.92% at $34.50. The stock went public on Nasdaq on June 14 this year at an issue price of $37, down about 10%.
Advancing medical care with AI
Analysts emphasize that TempusAI will benefit from its position to advance medical care with artificial intelligence and the market's interest in AI-related stocks and medical innovation.
Tempus claims to have "one of the world's largest multimodal databases" and an operating system that provides medical professionals with "AI-supported precise medical solutions" to achieve personalized treatment for patients.
Investors in this medical care company include Google (GOOGL.US) under Alphabet. TempusAI's founder and CEO, Eric Lefkofsky, also founded the e-commerce platform Groupon.
Stifel analysts said the company will be in a position of advantage and that Tempus has targeted "personalized genetic and clinical information for the oncology field" as a business opportunity to combine established methods of Dx and drug development with emerging AI capabilities.
Entering the profit track
William Blair's analysts pointed out that Tempus' "revenue growth is convincing and its profit prospects are bright," and predicted that the company's revenue growth will exceed that of its peers in the industry.
In the 12 months ending March 31, 2024, TempusAI's operating loss amounted to $0.196 billion, but its revenue for the 12-month period also reached $0.562 billion, showing strong growth momentum.
Stifel stressed that the company's "product portfolio itself has a unique synergy, enabling doctors who treat cancer patients and biopharmaceutical companies that develop cancer drugs to gain insights and benefits from using Tempus products," and said the company may expand its business to other areas beyond oncology.
Bank of America analysts expressed similar views, saying "now is the time to introduce artificial intelligence into the medical care field."