TLDR
- Tempus AI stock rose as much as 10.67%, trading at $64.63 after Piper Sandler upgraded the stock to Overweight with a $76 price target.
- The upgrade was driven by optimism around the Personalis acquisition and encouraging clinical data.
- TEM beat Q2 earnings, reporting a $0.04 adjusted loss per share versus the expected $0.14 loss, with revenue up 21.6% year-over-year to $382.49 million.
- New catalysts include a $9.5 million federal grant for cardiology AI and a large whole-genome dataset initiative.
- The consensus analyst rating remains Hold with an average price target of $69.33, though several firms have raised their targets recently.
Tempus AI (TEM) stock climbed as much as 10.67% on September 15, with the stock trading at $64.63 during mid-day trading, up from a prior close of $62.21. The intraday high reached $65.50.
The main driver was a fresh upgrade from Piper Sandler, which moved TEM to Overweight and set a price target of $76. The firm pointed to optimism around Tempus’s acquisition of Personalis and positive clinical data as key reasons for the call.
CEO Eric Lefkofsky added to the bullish tone at a recent conference, highlighting revenue upside from higher pricing on the company’s liquid biopsy services.
Earnings Beat Adds to the Momentum
Tempus recently posted better-than-expected quarterly results. The company reported an adjusted loss of $0.04 per share, well ahead of the consensus estimate of a $0.14 loss.
Revenue came in at $382.49 million for the quarter, just above analyst expectations of $379.69 million. That represented 21.6% growth compared to the same period last year.
Despite the strong top-line performance, Tempus remains unprofitable. The company posted a negative net margin of 17.77% and a negative return on equity of 50.28%.
Fresh Catalysts in Focus
Beyond the upgrade, investors are watching two new developments. Tempus received a $9.5 million federal grant to support its cardiology AI work.
The company also launched a large whole-genome dataset initiative, aimed at expanding its AI-driven tools and deepening its data platform. Both moves reflect Tempus’s push to grow its footprint with clinicians and biopharma partners.
Guggenheim raised its price target from $60 to $65, giving TEM a Buy rating. Needham maintained its Buy rating with a $75 price target. HC Wainwright lifted its target from $56 to $66.
The current consensus analyst rating sits at Hold, with an average price target of $69.33 across 21 analysts. Of those, 11 have a Buy, eight a Hold, and two a Sell rating.
Institutional interest has been growing. Sumitomo Mitsui Trust Group raised its stake by 23.4% in Q1, while Franklin Resources lifted its position by 27.9% in Q4. Institutional investors now own 24.22% of the stock.
On the insider side, EVP Andrew Polovin sold 7,927 stock units at $56.00 on August 19, and CEO Ryan Fukushima sold 14,286 units at $70.00 on August 21. Over the last 90 days, insiders have sold stock valued at approximately $56.96 million.
The stock’s 50-day moving average stands at $55.99, and its 200-day moving average is $52.33. TEM carries a debt-to-equity ratio of 3.06 and a beta of 3.72, reflecting its high volatility profile.
Tempus’s market cap stands at approximately $10.65 billion as of September 15.
