Tempus AI downgraded to Neutral at BofA on valuation

As previously reported, BofA analyst Michael Ryskin downgraded Tempus AI to Neutral from Buy with a price target of $60, up from $45, citing valuation. In a broader report on Life Sciences and Diagnostic Tools, the firm reviewed recent end-market datapoints and management commentary and points out that while there has been some stabilization and/or improvement in some areas, several major pockets of uncertainty and softness remain and are likely to persist into Q1 and the first half of 2025. On the whole, the firm thinks 2025 consensus estimates for the group are “too high for much of our coverage” and need to come down, the analyst added.