TLDR
- BTIG raised its price target on Tempus AI from $70 to $80, maintaining a Buy rating, sending the stock up 6.9% to $66.21
- The move is also linked to a major cancer trial milestone involving Merck and Moderna’s mRNA therapy, which uses Personalis’ sequencing platform
- Tempus AI agreed last month to acquire Personalis for $1.5 billion, connecting the trial results directly to TEM
- Q2 earnings beat expectations: adjusted EPS of -$0.04 vs. expected -$0.14, with revenue of $382.49 million, up 21.6% year over year
- Analyst consensus sits at Hold with an average price target of $65.69; nine Buy ratings, six Hold, two Sell
Tempus AI (TEM) climbed 6.9% to $66.21 on Thursday after BTIG Research lifted its price target from $70 to $80, keeping its Buy rating on the stock. Volume was heavy, with over 4.5 million shares changing hands by midday.
The stock had closed at $61.25 the prior session, making Thursday’s move one of the stronger single-day gains for TEM in recent weeks.
The catalyst was not just the analyst upgrade. Investors are also connecting a clinical trial result to Tempus AI’s pending $1.5 billion acquisition of Personalis.
Merck and Moderna released Phase 3 results Wednesday for a customized mRNA cancer therapy called intismeran autogene, used in combination with Keytruda. The trial, known as INTerpath-001, showed the combination improved recurrence-free survival in patients with resected melanoma.
It was the first successful Phase 3 readout for a personalized mRNA-based cancer treatment.
Moderna uses Personalis’ sequencing platform to analyze tumor tissue and identify the specific neoantigens needed to make each individualized dose. That connection brought Tempus AI into the conversation.
Tempus AI previously partnered with Personalis to commercialize minimal residual disease tests. The company then announced a deal last month to buy Personalis outright for $1.5 billion.
Earnings Beat
Tempus AI posted its most recent quarterly results on July 30. The company reported an adjusted loss of $0.04 per share, beating the consensus estimate of -$0.14 by $0.10.
Revenue came in at $382.49 million, above the $379.69 million analysts expected. That represented 21.6% growth year over year.
A year ago, the company posted a loss of $0.22 per share for the same period. The company still carries a negative net margin of 17.77% and a negative return on equity of 50.28%.
Analysts as a group expect Tempus AI to post a full-year loss of $1.38 per share.
Analyst Picture
Beyond BTIG, the broader analyst community is mixed on TEM. Piper Sandler cut its target from $58 to $56 on August 4, assigning a neutral rating. Guggenheim raised its target to $65 with a Buy rating in July.
Wolfe Research started coverage in June with a peer perform rating. Weiss Ratings moved the stock from sell (e+) to sell (d-) in August.
Across all firms, nine analysts rate TEM a Buy, six rate it Hold, and two rate it Sell. The consensus rating is Hold, with an average target of $65.69.
Insider selling has been active. CFO James Rogers sold $634,095 worth of stock in June. CEO Ryan Fukushima sold $1.91 million worth in July. Over the past 90 days, insiders have sold a combined $33.26 million in stock.
At $66.21, TEM is trading above its 50-day moving average of $52.10 and its 200-day moving average of $51.16.
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