11:29 AM EDT, 07/09/2024 (MT Newswires) -- Tempus AI's ( TEM ) topline is expected to increase at a 27% compound annual growth rate to $1.8 billion in 2028 from $532 million last year, Morgan Stanley said Tuesday in a report.

"While near-term revenue generation will hinge on the genomics business, which represents two-thirds of sales today, we see significant open-ended potential for Tempus AI's ( TEM ) platform, especially within data and services," Morgan Stanley said.

Genomics revenue is projected to expand at a 26% five-year CAGR to $1.16 billion in 2028, while data and other revenue is expected to increase at a 29% CAGR to $593 million, the report said.

"We forecast the full year of cash flow positive in 2027 and do not forecast any additional raises to get to profitability," Morgan Stanley said.

The firm initiated coverage of Tempus with an overweight rating and a $44 price target.

Tempus shares fell 5.5% in recent trading.

Price: 31,38, Change: -1.82, Percent Change: -5.48