Tempus AI Inc (TEM) PT Lowered to $52 at Loop Capital

Loop Capital analyst Mark Schappel lowered the price target on Tempus AI Inc (NASDAQ: TEM) to $52.00 (from $57.00) while maintaining a Buy rating.

The analyst commented: "Yesterday, Tempus AI reported preliminary 4Q24 total revenues below our estimate and the Street consensus. Total revenues are expected to be approximately $200M for roughly 35% growth, which is less than our/consensus estimate of $207M/$206M. The shortfall brings full-year 2024 revenue guidance to $693M, below management's prior guidance of $700M established earlier in the year. Additionally, the firm expects ~30% growth in its genomics business and ~45% growth in its data & services business. The revenue shortfall was attributed to softness in its Compass Contract Research Organization (CRO) business, which we view as non-core. Tempus did not provide formal profitability guidance, other than it expects a sequential improvement in Adjusted EBITDA in 4Q. Accordingly, we have lowered our 4Q revenue estimate to $200.5M, bringing our full-year number to $700M for 30% annual growth — our estimates do not include the pending acquisition of Ambry Genetics, which is expected to close in 1Q25. We reiterate our Buy rating, though we are trimming our price target to $52 on our revised estimates and recent multiple compression."

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