TD Cowen Reaffirms Hold Rating on Tempus AI (TEM), Cites the Company’s Position to be a Leader

Tempus AI, Inc. (NASDAQ:TEM) ranks among the best AI stocks to buy according to analysts. On December 8, TD Cowen reaffirmed its Hold rating on Tempus AI, Inc. (NASDAQ:TEM), with an $88 price target. According to TD Cowen, analyst Dan Brennan will be joined by a co-analyst in covering the healthcare AI company. The added coverage will focus on leveraging TD Cowen’s artificial intelligence abilities to examine Tempus AI’s database and commercial applications.

Citing the company’s vast data assets as a competitive advantage, the firm believes Tempus AI, Inc. (NASDAQ:TEM) is “well positioned to be a leader” in the pharmaceutical R&D efficiency area. As genomics testing and data services gained traction, the company declared a revenue of $334.2 million, while adjusted EBITDA improved to $1.5 million.

In addition, Tempus AI, Inc. (NASDAQ:TEM) management is shifting a sizeable portion of xT CDx volume to FDA-approved and Advanced Diagnostic Laboratory Test tracks, with additional FDA filings planned. The company aims to submit xT for FDA approval by the end of this year, followed by the xR test, establishing a framework for ADLT pricing through 2026.

Tempus AI, Inc. (NASDAQ:TEM) is a technology company focused on precision medicine by applying artificial intelligence to healthcare data. The company provides next-gen sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing.

While we acknowledge the potential of TEM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TEM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.