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Investing.com - TD Cowen upgraded Tempus AI Inc (NASDAQ:TEM) to Buy from Hold on Monday, setting a price target of $65.00, down from a previous target of $70.00.
The upgrade comes after the stock declined more than 50% over the past six months while the company’s fundamentals have strengthened, according to TD Cowen analyst Dan Brennan. The stock currently trades at $42.94, down 54.6% over six months, according to InvestingPro data. The company sports a $7.7 billion market cap and posted impressive 83% revenue growth in the last twelve months, though it remains unprofitable.
The firm said Tempus AI’s Insights business, described as a key AI data operation, is well-positioned to accelerate growth in 2026 and beat forecasts. The business is expected to benefit from increased demand among pharmaceutical companies for AI research and development offerings, with key opinion leader checks providing support for the outlook.
TD Cowen also expects the company’s Genomics segment to continue its growth momentum with potential upside.
Tempus AI develops AI-enabled precision medicine solutions for healthcare providers and life sciences companies. For deeper analysis, the company is covered in InvestingPro’s comprehensive Pro Research Report, one of 1,400+ reports transforming complex Wall Street data into actionable intelligence.
In other recent news, Tempus AI Inc. has made headlines with several significant developments. The company announced an expanded collaboration with Gilead Sciences, providing Gilead with access to Tempus’ AI-driven Lens platform to enhance its oncology pipeline. This collaboration aims to leverage broader datasets and analytical services for various research and development initiatives. Additionally, Tempus AI has expanded its partnership with Merck, focusing on accelerating precision medicine biomarker discovery and development. This multi-year agreement will utilize Tempus’ de-identified data and computational tools to support Merck’s oncology and other therapeutic portfolios.
In a separate development, Tempus AI released results from the ALERT trial, demonstrating the effectiveness of automated electronic clinician notifications in improving heart valve care. The trial involved 765 clinicians and over 2,000 echocardiograms, showing significant improvement in patient evaluation and treatment. On the financial front, H.C. Wainwright raised its price target for Tempus AI to $95, maintaining a Buy rating, citing the company’s expanding partnerships. In contrast, Jefferies initiated coverage of Tempus AI with an Underperform rating, expressing concerns over the company’s unclear catalyst path in therapy selection. These developments highlight Tempus AI’s ongoing efforts and challenges in the healthcare technology sector.
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