BTIG just kicked off coverage on Tempus AI (TEM, Financial) with a Buy rating and a $60 price target — suggesting nearly 48% upside from where the stock trades now. Analyst Mark Massaro called the company's AI-driven data operations a “significant free call option” for investors, pointing to its potential for long-term growth.
Massaro described Tempus as a fast-growing tech company in the precision medicine space. It's starting with oncology but has already begun branching out into other areas. He also noted that the company is off to a solid start in monetizing its genomics and data services through work with pharmaceutical companies and cancer specialists.
One big advantage? Tempus has one of the largest molecular libraries of cancer data. That puts it in a strong position to lead the charge in AI-powered healthcare analytics.
The company's also building momentum through key partnerships. It recently teamed up with Illumina (ILMN, Financial) to use AI in genomics research, expanding its focus to heart and brain conditions. On top of that, it struck a long-term deal with Recursion Pharmaceuticals (RXRX, Financial) to support cancer drug development using Tempus' biomarker data.
BTIG sees these moves as expanding Tempus' role in precision medicine and opening up new growth markets.
And while the stock has seen a bit of turbulence lately — down 1.09% over the past week — it's actually held up better than the S&P 500, which dropped 2.65% in the same period. Over the past month and six months, Tempus is down 20.09% and 17.00%, respectively, but again has outperformed the S&P's declines of 9.63% and 12.21%. So far this year, Tempus is up 18.04%, compared to a 12.81% drop in the broader index — a sign of strength even amid recent volatility.
