Tempus AI (TEM) stock surged 6.9% to $66.21 on Thursday after BTIG Research raised its price target from $70 to $80 and maintained a Buy rating. More than 4.5 million shares changed hands by midday, marking one of the strongest single-day moves for the health-tech company in recent weeks. The stock had closed at $61.25 in the prior session.
The rally was also fueled by a landmark Phase 3 trial result from Merck and Moderna. Their personalized mRNA melanoma therapy intismeran autogene, combined with Keytruda, improved recurrence-free survival in patients with resected melanoma in the INTerpath-001 trial. Moderna uses sequencing technology from Personalis to analyze tumor tissue and identify neoantigens for individualized doses. Tempus AI agreed last month to acquire Personalis for about $1.5 billion, so the clinical success directly validated the strategic value of the asset Tempus is set to inherit.
Tempus AI recently reported its first quarterly net profit of $5.6 million and revenue of $382.5 million, a 22% year-over-year increase, while adjusted EPS of -$0.04 beat the -$0.14 consensus estimate. Management raised full-year revenue guidance to about $1.6 billion. A Nature Medicine study validating its PRISM2 pathology AI model and a new oncology companion diagnostics partnership with CellCarta added to the positive backdrop.
Technical indicators turned bullish. TEM broke above major moving averages and cleared resistance near $58, with the 50-day and 200-day moving averages sloping upward. The relative strength index climbed into the mid-60s, reflecting intense buying pressure. Analysts remain mixed: nine rate the stock a Buy, six a Hold, and two a Sell, with a consensus Hold rating and an average target of $65.69. BTIG’s new target is $80, while The Wall Street Journal reported consensus Overweight and price targets as high as $100. Insider selling has been active, with CFO James Rogers and CEO Ryan Fukushima selling shares in recent months.
