Morgan Stanley upgrades Tempus AI to “overweight”
Morgan Stanley analysts gave Tempus AI an “overweight” rating — essentially a “buy” — and a raised their 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, which 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 IPO last year, Tempus has been winning over Wall Street analysts.
Of the 17 covering the stock, 10 have “buy” ratings — or their equivalent — on Tempus, up from six in June.
Tempus has seen its share price more than double this year.
