Beyond The Numbers: 9 Analysts Discuss Tempus AI Stock

In the last three months, 9 analysts have published ratings on Tempus AI TEM, offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $63.78, a high estimate of $74.00, and a low estimate of $55.00. This upward trend is evident, with the current average reflecting a 6.3% increase from the previous average price target of $60.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Tempus AI among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Ryan MacDonald |Needham |Maintains |Buy | $70.00|$70.00 | |Mark Massaro |BTIG |Announces |Buy | $60.00|- | |Ryan MacDonald |Needham |Maintains |Buy | $70.00|$70.00 | |Tejas Savant |Morgan Stanley |Raises |Overweight | $60.00|$50.00 | |David Westenberg |Piper Sandler |Lowers |Neutral | $55.00|$70.00 | |Michael Ryskin |B of A Securities |Raises |Neutral | $60.00|$54.00 | |Ryan MacDonald |Needham |Raises |Buy | $70.00|$56.00 | |Rachel Vatnsdal |JP Morgan |Raises |Neutral | $55.00|$50.00 | |Dan Brennan |TD Cowen |Announces |Buy | $74.00|- |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Tempus AI. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Tempus AI compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Tempus AI's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Tempus AI's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Tempus AI analyst ratings.

Discovering Tempus AI: A Closer Look

Tempus AI Inc is a technology company. It has built the Tempus Platform, which comprises both a technology platform to free healthcare data from silos and an operating system to make the resulting data useful. Its Intelligent Diagnostics use AI, including generative AI, to make laboratory tests more accurate, tailored, and personal.

Tempus AI's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Tempus AI's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 35.85%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Tempus AI's net margin excels beyond industry benchmarks, reaching -6.49%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Tempus AI's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -23.65%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.37%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Tempus AI's debt-to-equity ratio is notably higher than the industry average. With a ratio of 8.31, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.