Tempus AI reinstated with a Buy at TD Cowen

TD Cowen analyst Dan Brennan reinstated coverage of Tempus AI (TEM) with a Buy rating and price target of $74, up from $58, following the closed of the Ambry acquisition. The deal affords Tempus with a $300M profitable germline testing lab and offers opportunities to enhance the company’s existing products, expand into new areas and provides a path to positive free cash flow, with the main drawback being Ambry’s slower growth, the analyst tells investors in a research note. The firm cites Tempus AI’s larger revenue base and “attractive” margin expansion for the increased target.