Tempus AI Has Huge Market Alternative For This Healthcare Expertise, Bullish Analyst Says – Tempus AI (NASDAQ:TEM)

William Blair initiated protection on Tempus AI, Inc TEM, citing the corporate’s ‘differentiated method and enterprise mannequin.’

Tempus AI is a healthcare know-how firm that makes use of synthetic intelligence know-how to gather and analyze molecular, scientific, and genomic information.

It collects scientific and genomic databases from tutorial medical facilities and community-based hospitals.

Associated: Tempus May Acquire Share In AI Well being Care Market Poised To Develop By Over 30%.

In June, the corporate launched an IPO priced at $37 per share by way of promoting 11.1 million shares, with gross proceeds of round $410.7 million.

William Blair says the Outperform ranking relies on “What we consider is a large market alternative, Tempus’s differentiated method and enterprise mannequin, and an affordable valuation stage offered the corporate is ready to execute on targets over the close to and intermediate time period.”

The William Blair analyst writes that the NGS-based remedy choice exams market is nearing 30% adoption. Tempus holds a market share of round 25%.

As tips endorse simultaneous testing (liquid biopsy and stable tumor), RNA testing’s worth grows. Monitoring minimal residual illness and recurrence is turning into normal observe, positioning Tempus with a various check menu for substantial progress forward.

Tempus initially targeted on oncology however intends to develop its platform past this area.

They plan to deploy it in varied illness areas and make the most of AI-based functions to enhance diagnostics, cut back care gaps, and lengthen into rising classes similar to neuropsychiatry, cardiology, and radiology.

Tempus trades at 5.5 occasions 2025 income, which is in step with its peer group, which is cheap given its quicker top-line progress profile and differentiated information enterprise.

Worth Motion: TEM shares are down 0.63% at $32.99 on the final verify on Tuesday.

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Tempus lab picture courtesy of Tempus

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