Why Wall Street Is Bullish on Healthcare Tech Stock Tempus AI

Several analysts kicked disconnected sum of Tempus AI (TEM) pinch bullish comments, anticipating gains from nan biotech company's applications of artificial intelligence (AI) to healthcare. 

William Blair and J.P. Morgan analysts gave Tempus AI banal an "overweight" rating, pinch J.P. Morgan mounting its value nonsubjective for Tempus astatine $42. Meanwhile, Bank of America assigned nan banal a "buy" standing and group its value target astatine $41, while Stifel besides gave Tempus a "buy" standing and group a value nonsubjective of $45.

Shares of Tempus AI surged successful early trading Tuesday, but were down astir 1% astatine $33.54 arsenic of 2:20 p.m. ET. The stock, which began trading successful June, has fallen astir 10% from its initial nationalist offering (IPO) value of $37.

Leveraging AI Tech To Advance Healthcare

The analysts highlighted Tempus' positioning to summation arsenic a healthcare institution utilizing AI, and imaginable to use from investor liking successful AI-related stocks and healthcare innovations.

Tempus claims "one of nan world’s largest libraries of multimodal data" and an operating strategy that provides aesculapian professionals pinch "AI-enabled precision medicine solutions" to present personalized diligent treatment.

The healthcare institution made its trading debut connected nan Nasdaq successful June, pinch Alphabet’s (GOOGL) Google among its investors. Tempus AI's laminitis and Chief Executive Officer (CEO) Eric Lefkofsky besides founded Groupon (GRPN), an e-commerce marketplace.

Stifel analysts indicated that nan institution could beryllium well-positioned to gain, saying Tempus has taken purpose astatine "personalized familial and objective accusation wrong oncology" arsenic an "opportunity pinch a business that combines established approaches wrong Dx and supplier improvement pinch emerging AI capabilities."

On Track To Profitability

William Blair analysts noted Tempus' "compelling gross maturation pinch statement of show to profitability," projecting nan company's gross maturation to outperform its manufacture peers.

Stifel highlighted nan company's "portfolio is uniquely synergistic wrong itself, allowing some physicians treating crab patients and biopharma companies processing crab narcotics to use from nan insights gained done nan usage of Tempus products," and indicated that nan institution will apt grow beyond oncology into different areas.

Bank of America analysts echoed a akin sentiment, saying "the clip is now to bring AI to Healthcare."