SoftBank-Backed TempusAI Gains Favor on Wall Street with Promising Prospects

TapTechNews July 10th news, according to a report by Reuters today, starting from Tuesday local time, Wall Street has begun to be optimistic about the SoftBank-backed genetic testing company TempusAI, which has an AI-driven clinical and molecular database and is considered to bring more powerful diagnostic and testing tools.

TapTechNews note: TempusAI is headquartered in Chicago, USA, and it sells genomic diagnostic testing products to clinicians and hospital systems, covering areas such as oncology, psychiatry, radiology, and cardiology.

Seven brokerages including JPMorgan, Morgan Stanley, Bank of America Global Research, and Stifel have initially given the company a Buy or Overweight rating, and TDCowen has set the highest target price of $50.

JPMorgan predicts that Tempus' revenue will grow by approximately 33% by 2027. The company is expected to achieve core profitability in the second half of 2025. It said that Tempus has successfully monetized unique clinical genomic data through licensing agreements with pharmaceutical and biotech clients, differentiating Tempus from other competitors.

Morgan Stanley predicts that by 2028, the company's revenue will increase by 27% and is expected to achieve core profit break-even in 2027.

Bank of America Global Research said that Tempus still has room to further expand existing relationships with biotech and large pharmaceutical companies and increase the number of new customers.

It is reported that TempusAI's net loss widened from $214.1 million in the previous year to $289.8 million in fiscal 2023, while total revenue increased by 65.8% to $531.8 million. However, according to regulatory filings, the revenue of its AI application business accounts for about 1% of total revenue. Tempus described its AI application revenue as insignificant.