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Tempus AI Inc. (TEM) is having a good Thursday. The stock is trading higher in premarket, building on momentum from the previous session. The catalyst? A mix of analyst optimism and a major cancer trial win that shines a spotlight on the company's pending acquisition of Personalis Inc.
BTIG reaffirmed its Buy rating on Tempus AI Thursday and bumped its price target up to $80. That's a nice vote of confidence, but the bigger story might be the clinical trial news that broke Wednesday.
Merck & Co. Inc. (MRK) and Moderna Inc. (MRNA) released Phase 3 results for their INTerpath-001 study, which tested intismeran autogene, a customized mRNA-based therapy, in combination with Keytruda. The treatment significantly improved recurrence-free survival in patients with resected melanoma. This is the first successful Phase 3 readout for a personalized mRNA cancer treatment, which is a big deal.
So what does this have to do with Tempus AI? It's all about Personalis. Moderna uses Personalis' sequencing platform to analyze tumor tissue and identify the specific neoantigens needed to create individualized doses. Tempus AI had already partnered with Personalis to commercialize minimal residual disease tests, and last month it agreed to acquire the company for $1.5 billion. The trial results validate the technology that Tempus AI is betting on, which is why investors are connecting the dots.
At $62, Tempus AI is trading 26.6% above its 20-day simple moving average of $48.81 and 19.2% above its 50-day SMA of $51.84. It's also 8.5% above its 200-day SMA of $56.97. That sounds bullish, but the longer-term picture is more complicated. The 50-day SMA remains below the 200-day SMA after a death cross in January, and the 20-day SMA is still below the 50-day SMA. So while the stock has bounced, the trend isn't fully confirmed.
Traders might watch $63 as near-term resistance, with $61.50 as potential support if the premarket gains fade.
Tempus AI shares were up 1.22% at $62 in Thursday premarket trading, according to market data.
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