Tempus AI stock price target raised to $72 from $62 at TD Cowen

TD Cowen raised its price target on Tempus AI (TEM) to $72 from $62, maintaining a Buy rating, citing stronger genomic volumes and a positive outlook for its Ambry business. This upgrade follows Tempus AI's robust Q2 2025 earnings, which exceeded revenue forecasts with $314.6 million and reported a narrower loss per share of -$0.22, contributing to a 19.5% stock surge in the past week. However, TD Cowen noted that company guidance implies slower growth in the second half of the year, leading to reduced estimates for that period, while Stifel maintains a Hold rating with a $65 price target, indicating a nuanced analyst sentiment despite recent strong performance.

Analysis

Tempus AI (TEM) has demonstrated significant operational strength, evidenced by its second-quarter 2025 results which surpassed analyst expectations. The company reported revenue of $314.6 million against a forecast of $297.8 million and a narrower-than-expected loss per share of -$0.22 versus the anticipated -$0.25. This performance, driven by improved genomic volumes and a positive outlook for its Ambry business, catalyzed a 19.5% surge in its share price over the past week. In response, TD Cowen maintained its Buy rating and raised its price target to $72 from $62. However, this bullish sentiment is tempered by two key factors: Tempus AI's own guidance suggests a deceleration in growth for the second half of the year, prompting TD Cowen to lower its own estimates for that period. Furthermore, analyst views are not uniformly positive, as Stifel has maintained a more cautious Hold rating with a $65 price target, indicating a nuanced outlook on the company's near-term prospects despite the strong quarterly execution.

Key Decisions for Investors

• Investors should weigh the recent positive momentum from the strong Q2 earnings beat against the company's own guidance, which implies a growth slowdown in the second half of the year.
• Monitor future performance in the genomics and Ambry business segments, as continued market share gains are critical to justifying the stock's recent rally and achieving upgraded price targets.
• Consider the split in analyst ratings, with TD Cowen's $72 'Buy' contrasting with Stifel's $65 'Hold', as this divergence highlights uncertainty regarding the company's ability to sustain its recent outperformance.