Update shared on27 Aug 2025
Fair value Increased 2.16%Tempus AI's slightly higher consensus price target reflects a significant increase in its future P/E ratio despite a decline in net profit margin, resulting in a new fair value estimate of $71.
What's in the News
- Tempus AI filed a $500 million follow-on equity offering of Class A Common Stock via an at-the-market transaction and raised its full-year 2025 revenue guidance to approximately $1.26 billion, representing ~82% annual growth.
- A class action lawsuit was filed against Tempus AI alleging inflated contract values, questionable related party deals, aggressive accounting, and doubts about the credibility of certain joint ventures; Spruce Point Capital’s report raised additional concerns, leading to a 19% stock price decline.
- The company expanded its strategic relationship with Personalis, extending the exclusive commercialization agreement to include colorectal cancer and lengthened exclusivity through 2028, further strengthening Tempus' position in MRD testing across four cancer indications.
- Tempus announced integration of its Tempus Next platform into breast cancer care at Mercy, following prior deployment in lung cancer, supporting EMR-integrated, guideline-based decision support for 1,000+ physician locations.
- Tempus was added to multiple major Russell Indexes, boosting potential investor visibility and indexing demand.
Valuation Changes
Summary of Valuation Changes for Tempus AI
- The Consensus Analyst Price Target has risen slightly from $69.50 to $71.00.
- The Future P/E for Tempus AI has significantly risen from 61.63x to 69.87x.
- The Net Profit Margin for Tempus AI has fallen from 14.18% to 12.80%.
Disclaimer
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