Tempus AI (TEM) Stock Gets a $110 Price Target on Rising AI Adoption in Medicine

Core Insights - Tempus AI, Inc. is recognized as a significant player in the AI sector on Wall Street, with a Buy rating and a price target of $110.00 set by Canaccord Genuity analyst Kyle Mikson, driven by the potential for AI deployment in clinical practice to enhance long-term revenue growth [1][3]. Group 1: Company Overview - Tempus AI, Inc. operates in the healthcare technology sector, providing AI-enabled precision medicine solutions, including oncology testing for genomic profiling and data services [3]. - The company has a strong acquisition strategy, exemplified by the Ambry deal, which is expected to enhance testing capabilities and AI functionalities, thereby accelerating growth [2][3]. Group 2: Financial Projections - The firm's DCF model for Tempus AI includes key assumptions such as a 10-year revenue compound annual growth rate (CAGR) of 22.8% and a peak operating margin of 45.6%, with a discount rate of 15.0% [3].