Tempus AI Inc Surpasses Analyst Price Target, Inviting Scrutiny
In recent trading, shares of Tempus AI Inc (Symbol: TEM) have exceeded the average analyst 12-month target price of $61.40, currently trading at $65.22 per share. When a stock like TEM hits an established target, analysts face two options: they may choose to downgrade their valuation or adjust the target price upward. This reaction can also hinge on recent business developments that might be fueling the stock’s rise; if the outlook for Tempus AI is positive, it may warrant a target price increase.
Analysts within the Zacks coverage have provided 10 different price targets for Tempus AI Inc, resulting in an average target. However, this figure is simply a mathematical mean. Among the analysts, one has set a target as low as $48.00, while another has a target as high as $74.00, leading to a standard deviation of $7.633.
The rationale behind looking at the average target is to leverage the “wisdom of crowds” approach, which aggregates the opinions of multiple analysts rather than relying on one expert’s perspective. With TEM trading above the average target price of $61.40 per share, this presents investors with the opportunity to evaluate whether $61.40 is a milestone toward a higher target or if the stock has become overvalued, suggesting a potential profit-taking point.
| Recent TEM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 3 | 3 | 6 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 6 | 6 | 6 | 3 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.13 | 2.23 | 2.23 | 1.68 |
The average rating in the table is rated on a scale from 1 to 5, where 1 represents Strong Buy and 5 represents Strong Sell. This analysis utilized data from Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
