Tempus AI up after JP Morgan initiates coverage with overweight

Tempus Holdings

09/07/2024 09:58

** Shares of genetics testing firm Tempus AI  TEM.O , backed
by SoftBank  9984.T , rise 3% to $34.19 in premarket
    ** JP Morgan starts coverage on TEM stock with 'overweight'
rating; anticipates compound annual revenue growth of around 33%
from 2024-2027
    ** Expects TEM to become adj. EBITDA positive by the second
half of 2025
    ** Says TEM has successfully monetized its patient database
of combined clinical genomics data, through "licensing
agreements with pharma and biotech customers"
    ** Notes company's genomics business has "grown at a torrid
pace" and can thrive well in a growing $70 bln genomics market 
    ** Brokerage notes volatility in co shares post-IPO, but
views favourable conditions for shares given future growth in
genomics
    ** Company debuted on Nasdaq on June 13; stock down more
than 5% in July
    ** Brokerage sets Target Price at $42 
    

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