Tempus AI initiated with a Buy at Loop Capital

Loop Capital initiated coverage of Tempus AI with a Buy rating and $48 price target. The company has emerged as one of the largest sequencers of DNA/RNA cancer patients in the U.S., with the main value proposition coming from its ability to combine its complex genomics data with clinical information and machine learning insights, making its tests more intelligent and personalized, the analyst tells investors in a research note. Tempus offers investors a secular growth theme, an innovative healthcare data platform, and a large customer base of more than 6,500 physicians across hundreds of provider networks, hospitals, and pharma/biotech companies, the firm states, adding that this is fueling a business growing in the mid-30% range while its stock trades at enterprise value of 4-times expected 2026 revenue.