10 Companies Jump on Better Earnings, Outlook

5. Tempus AI Inc. (NASDAQ:TEM)

Shares of Tempus AI surged by 11.85 percent on Wednesday to end at $69.18 apiece after earning an upgraded outlook from an investment banking firm.

On Wednesday, TD Cowen reiterated its buy rating for Tempus AI’s shares, while increasing the price target to $74 after the company successfully closed its acquisition of Ambry Genetics, a deal that the investment research firm believes would position the company for more product offerings and entry into new markets.

Tempus AI acquired Ambry Genetics for $600 million, of which $375 million was paid in cash, and worth $225 million in shares. Of the latter, $100 million will be subject to a one-year lock-up agreement following the transaction.

With Ambry Genetics able to make $300 million in revenues, the acquisition was seen as a strategic move that would enable the company to achieve positive free cash flow moving forward.