Tempus AI reverses day's gains; brokerages initiate with bullish ratings

Tempus Holdings

09/07/2024 17:24

(Updates)
    ** Shares of genetics testing firm Tempus AI  TEM.O  reverse
gains of early trade; down 3.5% to $32.1 from so-far day's high
of $35.75 
    ** At least seven brokerages start bullish ratings on TEM's
stock, including J.P. Morgan and Morgan Stanley 
    ** J.P. Morgan anticipates CAGR of around 33% from
2024-2027, expects TEM to turn adj. EBITDA-positive by H2 2025
    ** Brokerage says TEM has successfully monetized its patient
database of combined clinical genomics data, through "licensing
agreements with pharma and biotech customers"
    ** Morgan Stanley says TEM can gain in a $190-bln total
addressable market through its genomics, data services and AI
applications services
    ** TEM's multi-modal data lake is larger and superior than
its peers; expected revenue growth of around 27% through 2028 -
Morgan Stanley
    ** Brokerage Needham says company's "differentiated,
AI-powered approach to precision medicine" has created
"more-targeted therapies to drive better outcomes"
    ** TEM debuted on Nasdaq on June 14; stock down 17% from its
opening price of $40
    ** Company's revenue from "AI applications" business was
about 1% of total revenue in 2023, according to SEC filing.

 (Reporting by Nikhil Sharma in Bengaluru)
 ((nikhil.sharma@thomsonreuters.com))