Ending November on an auspicious note, shares of Tempus AI (TEM 6.51%) outperformed the S&P 500 in the last week of trading for the month. In addition to Cathie Wood's Ark Invest revealing a bullish outlook on the disruptive healthcare company that utilizes artificial intelligence (AI) solutions to enhance patient outcomes, investors responded to an analyst's upwardly revised price target for Tempus AI stock.
According to data provided by S&P Global Market Intelligence, Tempus AI stock rose 10.9% from the end of last Friday's market session through the end of trading today, while the S&P 500 rose 3.7%.
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Cathie Wood's Ark Invest seizes a buying opportunity
After the market closed last Friday, investors learned that two of Ark Invest's exchange-traded funds (ETFs) increased their positions in Tempus AI during the day. The Ark Innovation ETF (ARKK 4.10%) added 29,605 shares of Tempus AI to its portfolio, and the Ark Genomic Revolution ETF (ARKG 5.66%) picked up 9,302 shares.
NASDAQ: TEM
Key Data Points
On Tuesday, BTIG analyst Mark Massaro assumed a more optimistic stance on Tempus AI, hiking his price target on the stock to $105 from $96. According to thefly.com, Massaro based his action on several factors -- one of which is the belief that the company has diversified and robust sources of revenue.
Based on Tempus AI stock's closing price of $76.06 on Monday, Massaro's price target implies upside of 38%.
Should investors avoid Tempus AI stock after its recent rise?
While the nearly 11% climb in Tempus AI stock this week may deter some investors, the truth is that the stock may have considerably more room to run. The company's still in the early innings of its development as it pioneers new AI applications for healthcare. For growth investors, the recent rise should hardly discourage them from taking a closer look at the stock as a potential addition to their portfolios.
