BTIG downgrades Personalis ahead of Tempus AI takeover

BTIG has downgraded Personalis (PSNL) from Buy to Neutral, citing the likelihood of Tempus AI (TEM) successfully completing its acquisition of the cancer test maker. Tempus AI announced a $1.5 billion deal to acquire Personalis in July, despite the company exploring potential sales and attracting interest from multiple parties, including Merck (MRK).

BTIG analyst Mark Massaro noted that, despite a competitive bidding process, Tempus AI is highly likely to close the acquisition at the originally announced terms of $16.25 per share. Massaro removed his previous price target of $16.25, stating that a higher competitive offer is not expected to emerge.

According to an S-4 filing, Personalis received takeover interest from as many as five bidders but ultimately chose Tempus AI's lower bid due to antitrust concerns over the higher bidder. Massaro emphasized that the deal is expected to close at the agreed-upon price of $16.25 per share.