Tempus AI stock crashed Tuesday as investors questioned the medical AI company's long-term growth prospects.
But William Blair analyst Andrew Brackmann remains a believer in the stock. Tempus uses artificial intelligence to create individualized treatment paths for patients. During the fourth quarter, the company reported a loss of 18 cents per share on $200.7 million in sales.
Brackmann called the fourth-quarter update "net-neutral" to his thesis. Tempus AI guided to $1.24 billion in full-year sales, including its newly acquired Ambry Genetics business.
"We believe guidance for the year is appropriately set to be achieved and that Tempus has a very long revenue growth runway ahead of it," he said in a report. "Still, shares are off roughly 10% in aftermarket trading, as the guidance is a bit more back-half weighted than some expected and there were questions on the data businesses' long-term growth outlook."
Tempus AI stock tumbled 15.1% to 59.10 on today's stock market.
Tempus AI Stock's Run
Shares have been on a run recently, surging nearly 192% from Jan. 13 to Feb. 14. Tempus AI stock has pulled back more than 35% from the Valentine's Day high.
Brackmann rates Tempus stock a market perform.
"We remain long-term believers in Tempus, its strategy and the market it operates in," he said. But "a lot seems to be baked in at these levels and the post-close valuation of about 10 times 2025 revenue (pre-call) seems fair. There was nothing in this update that swayed that view."
Promisingly, Tempus AI stock still has a Relative Strength Rating of 94, according to IBD Digital. This means shares rank in the top 6% of all stocks when it comes to 12-month performance.
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