
TEM Stock Forecast & Price Target
TEM Analyst Ratings
Bulls say
Tempus AI Inc demonstrated significant growth, delivering 72.5k NGS tests in 3Q24, a notable increase from both the previous quarter and the same period last year. Revenue surged by 35.9% year-over-year, mainly propelled by a 30.6% increase in Genomics revenue to $120.4 million, and a robust 44.6% growth in the Data & Other segment to $80.2 million. Furthermore, the company projects core growth of approximately 30%, with the Data business expected to expand even faster, indicating a strong long-term growth trajectory alongside an expected EBITDA burn improvement.
Bears say
The financial outlook for Tempus AI Inc appears negative due to several key factors, including the potential decline in reimbursement rates, which could adversely affect the company's growth rate and ability to monetize its dataset. Furthermore, the competitive landscape in the healthcare and artificial intelligence sectors presents substantial risks, particularly if Tempus were to lose market share in genomic testing or key health system customers. Lastly, despite an EV/revenue multiple of 8.3x projected for FY25, which trades at a discount compared to its peers, the flat year-over-year operating cash flow and high debt levels raise concerns regarding financial stability and operational efficiency.
This aggregate rating is based on analysts' research of Tempus AI Inc and is not a guaranteed prediction by Public.com or investment advice.
TEM Analyst Forecast & Price Prediction
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