Morgan Stanley upgrades Tempus AI to overweight
Morgan Stanley upgraded Tempus AI to an "overweight" rating, raising the price target to $85. Analysts highlighted Tempus' rapid growth in hereditary cancer risk testing, following its acquisition of Ambry Genetics. They also noted potential in Tempus' data and services unit. Despite Tempus' unprofitability since its 2024 IPO, it has gained favor among analysts, with 10 out of 17 giving it a buy rating. Tempus' share price has more than doubled this year.
Morgan Stanley analysts gave Tempus AI an “overweight” rating — essentially a “buy” — and a raised thier price target to $85, from $80, writing in a note published late Monday that despite being “a relatively new player, the company has already established itself as one of the top providers of precision oncology testing.”
As part of their reasoning, analysts spotlighted faster-than-expected growth in Tempus’ hereditary cancer risk testing business, which it acquired through the purchase of Ambry Genetics in a deal that closed earlier this year.
Morgan Stanley also suggested there could be upside in Tempus’ relatively small data and services unit, whic it sells de-identified patient data pulled from its testing archive for use in pharmaceutical drug trials and other applications.
Despite being consistently unprofitable since its 2024 IPO, Tempus has been winning over Wall Street analysts.
Of the 17 covering the stock, ten have buy ratings — or their equivalent — on Tempus, up from six in June.
Tempus has seen its share price more than double this year.
