We got here throughout a bullish thesis on Tempus AI, Inc. (TEM) on Substack by Oliver | MMMT Wealth. On this article, we are going to summarize the bulls’ thesis on TEM. Tempus AI, Inc. (TEM)’s share was buying and selling at $43.23 as of April 22nd.
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Tempus AI (TEM) is rising as one of many highest-quality performs in well being know-how, delivering robust 2-year income and EBITDA development projections of over 20%. At present buying and selling at simply 6.0x subsequent twelve months (NTM) gross sales regardless of a sturdy 35% income development outlook, the inventory seems undervalued, particularly contemplating its historic tendency to rebound sharply every time it dips under 7x gross sales. Tempus stands out as a diversified firm within the well being tech sector, working throughout a broad spectrum together with genomics, information licensing, and synthetic intelligence purposes. This multi-pronged enterprise mannequin not solely helps steady and recurring income streams but in addition positions the corporate to profit from long-term tendencies in healthcare digitization and personalised drugs. The valuation low cost appears unjustified given the corporate’s scale, momentum, and know-how management. For buyers, this dislocation creates a gorgeous entry level right into a high-growth firm.
Tempus AI, Inc. (TEM) just isn’t on our listing of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held TEM on the finish of the fourth quarter which was 7 within the earlier quarter. Whereas we acknowledge the danger and potential of TEM as an funding, our conviction lies within the perception that some AI shares maintain higher promise for delivering greater returns, and doing so inside a shorter timeframe. In case you are on the lookout for an AI inventory that’s extra promising than TEM however that trades at lower than 5 instances its earnings, take a look at our report in regards to the cheapest AI stock.
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Disclosure: None. This text was initially revealed at Insider Monkey.
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