Stock Price & Analysis

Buy TEM stock as it shows strong growth potential with a 77% score on the P/B Growth Investor model and recent buying activity from Ark Invest, despite short-term market fluctuations.

Price Prediction for TEM Stock in 2025

Based on current trends and analysis, TEM stock is predicted to reach a price range of $55 to $65 by the end of 2025. This forecast is supported by strong fundamentals, including the company's leadership in AI-driven precision medicine and recent acquisitions like Deep 6 AI, which enhance its competitive position. Additionally, significant investments from Cathie Wood's Ark Invest reflect confidence in the stock's growth potential.

Reasons for the Prediction:

1. Strong Fundamentals: Tempus AI is rated highly by the P/B Growth Investor model, indicating strong future growth potential.
2. Investor Confidence: Ark Invest has been consistently buying TEM shares, demonstrating confidence in its AI-driven precision medicine business.
3. Analyst Outlook: The average analyst price target suggests substantial upside, with a current price of $49.8 and a target of $63.67.

This prediction aligns with the company's strategic growth initiatives and positive market sentiment.

The S1 support level for TEM Stock is $43.32 ,The R1 resistant level for TEM Stock is $56.39.

As of the end of day on 2025-03-24, the price of TEM Stock was $59.32.

The target price for TEM Stock according to analyst rating is 64.70, with the highest price target at 74.00 and the lowest at 55.00. Analysts have a Moderate Buy rating on TEM Stock overall.

The market cap of TEM is $9.3B.

Analysis and Insights

Valuation Metrics:

• Price-to-Book (P/B) Ratio: The P/B ratio for TEM is 0.40, indicating undervaluation as it is below 1.
• EV/EBITDA: The metric is 97.15, suggesting moderate valuation relative to earnings.
• Price-to-Sales (P/S) Ratio: At 163.63, this indicates a premium, but considering the growth prospects, it may be justified.

Technical Analysis:

• RSI: The RSI_14 is 44.65, indicating the stock is not overbought and is in a neutral zone.
• Stochastic Oscillator: The StochK and StochD are 17.35 and 10.03, respectively, suggesting the stock is oversold.
• MACD: The MACD line is -4.18, indicating bearish momentum, but the histogram shows a slight improvement.

Fibonacci Levels:

• Support Levels: 43.45 and 40.62.
• Resistance Levels: 52.65 and 55.48.
• Pivot Point: 48.05, close to the current price of 49.8.

Market Sentiment and Analyst Ratings:

• Ark Invest's Recent Purchases: Significant buying activity by Ark Invest, with over $1.36 million invested recently, reflects confidence in TEM's growth potential.
• Analyst Consensus: A Moderate Buy rating with a price target of $63.67 suggests substantial upside potential.

Conclusion:

Based on the analysis, TEM does not appear to be overvalued. The stock is currently undervalued from a technical standpoint, with strong institutional buying and positive analyst sentiment. The recent price dip may present a buying opportunity.

Tempus AI, Inc. is a technology company. The Company provides next generation diagnostics across multiple disease areas, with technology capabilities, harnessing the data and analytics to help personalize medicine. The Company’s product lines include genomics, data, and artificial intelligence applications (AI). Its genomics product line leverages its laboratories to provide next generation sequencing, diagnostics, polymerase chain reaction (PCR), profiling, molecular genotyping, and other anatomic and molecular pathology testing. The Company's AI applications are focused on developing and providing diagnostics that are algorithmic in nature, implementing new software as a medical device, and building and deploying clinical decision support tools. Its primary product of AI applications is Next, an AI platform that leverages machine learning to apply an intelligent layer onto routinely generated data to proactively identify and minimize care gaps for oncology and cardiology patients.

The price prediction for TEM stock by 2030 is estimated to reach $70-$80 per share, driven by its strong AI-driven growth prospects and increasing demand in the healthcare technology sector. The company's investments in AI and genomics position it well for long-term revenue growth, supported by a solid financial foundation with $940 million in remaining contract value. Analysts maintain a bullish outlook, with price targets reflecting confidence in its future performance.

TEM has a total of 2300 employees.