CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target to $47 from $59, applying a 4.7x EV/sales multiple to our 2027 estimates, a discount to TEM's 7.7x average forward multiple since IPO in 2024. We narrow our 2026 loss per share view by $0.01 to -$0.44 and widen 2027's by $0.05 to -$0.14. While we expect TEM to report positive operating income and EPS by 2028, it is possible that operational disruption, competitive losses, or other developments delay the company's path toward profitability and drive further operating losses. With macroeconomic headwinds pressuring the health care sector, we favor some of TEM's competitors over the near-term, including peers in life sciences tools/services as well as the health care services sub-industry, despite the company's significant growth expectations. We also note risks around reimbursement, with TEM deciding to meter its MRD testing volumes to wait for more favorable pricing dynamics, as well as uncertainties around the timing of FDA approvals for various tests.