Wall Street analysts are bullish on recently launched health-care technology stock Tempus AI . On Tuesday, analysts across the Street initiated coverage of the stock, with most assigning it either a buy or overweight rating. Bank of America analyst Michael Ryskin praised the company for its artificial intelligence capabilities in the health-care field.
"Tempus provides AI-enabled precision medicine, bringing the power of advanced technology to healthcare and diagnostics. By combining a patient's molecular, clinical, and imaging data with its AI platform, Tempus delivers personalized therapy decisions," he wrote. Tempus AI debuted at the Nasdaq on June 14, closing at $40 after pricing its initial public offering at $37.
Last month, investment management firm SoftBank announced it had invested about $200 million in Tempus AI before its Nasdaq listing. Since its debut, Tempus AI stock has slipped 10% from its IPO price. But Bank of America's Ryskin has set a price target of $41 for the stock, 23% above Monday's close.
He has a buy rating on shares. TEM YTD mountain TEM While the stock is trading at a "premium valuation," Ryskin justified the price by pointing out Tempus AI's "strong financial profile, the hybrid nature of its business (both healthcare and tech), and the lack of pureplay comps." The company has a total addressable market of at least $70 billion and has already showed its ability to scale up in a relatively short period of time, he said.
Other analysts are even mo.
