Tempus AI: The Investment Opportunity Of A Decade, Strong Buy

HedgeMix
2.41K Followers
(10min)

Summary

  • Tempus AI started off the year with a stellar rally, but then bounced back from its peak in early February. There's no way this stock will remain cheap for long.
  • Tempus AI's financials have significantly improved. Q4FY24 saw record revenues driven by 35.8% YoY growth, with the Data & Services segment growing by 44.6% YoY.
  • I see major growth catalysts ahead. Tempus AI recently launched its AI-enabled health app, Olivia, a product that will revolutionize healthcare.
  • Management guides for $1.24 billion in 2025 revenues, a 79% YoY growth, bolstered by the Ambry Genetics acquisition and a rapidly growing TAM.
  • Despite the deep selloff recently, I rank TEM a 'Strong Buy' with a target price of $62. There's now a great buy the dip opportunity.

Using AI technology helps with genetic code prediction research.

Suriphon Singha

Authored by Jacques Georget

Recap

In December last year, we initiated coverage on Tempus AI (NASDAQ:TEM), a US-based health tech company specialized in Genomics and data-driven AI solutions for the healthcare industry. The article introduced readers to the business

This article was written by

2.41K Followers
Stock analysis brought to you by the team at HedgeMix. The analysis is based on a careful review of the growth prospects of each company. For valuation purposes, we often use the Discounted Cash Flow (DCF) model, sharing valuable insight on cash flow generation under different business models.Associated with SA analyst Garvit Bhandari.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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