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Tempus AI Retains Buy Rating as Canaccord Adjusts Price Target to $95 After Q3 Beat
Yahoo Finance· 2025-11-16 04:42
Group 1 - Tempus AI, Inc. is recognized as one of the top digital health stocks to invest in, with positive sentiment from Wall Street following its Q3 results [1] - The company's Q3 performance was driven by a significant increase in oncology test volumes by approximately 27% and a surge in hereditary testing, leading to total genomics revenue of around $253 million and overall sales of $334 million [2] - Management has raised its full-year guidance due to the durability of growth levers, despite GAAP results remaining negative due to stock compensation and other costs [2][3] Group 2 - Canaccord Genuity maintained a Buy rating on Tempus AI but slightly reduced its price target from $110 to $95, citing the potential for AI deployment in clinical practice to drive long-term revenue growth [1] - The company's gross profit reached approximately $210 million, and adjusted EBITDA turned positive, indicating improved financial health [2] - Tempus AI applies artificial intelligence to clinical and molecular data, focusing on personalizing treatment, particularly in oncology, and aims to expand its technology across various diseases [3]