Lemonade's Share Rally Leaves Limited Upside Without New Catalysts, Morgan Stanley Says
Lemonade's (LMND) recent share price rally has largely priced in the company's growth and earnings outlook, leaving limited room for additional upside without new catalysts, Morgan Stanley said in a Wednesday note. The brokerage said the insurer's technology-driven growth and underwriting momentum leave it well positioned to achieve net income profitability by the end of 2027, while forecasting gross written premium growth of about 35% in 2026 and 30% in 2027. Lemonade's ability to compete in a softening auto insurance market while maintaining operating leverage and advancing toward profitability will be key to its long-term growth, the report added. Morgan Stanley downgraded the stock to equal weight from overweight with a price target of $75. Lemonade shares were down 9% in Wednesday trading. Price: $70.56, Change: $-7.03, Percent Change: -9.06%
Lemonade's (LMND) recent share price rally has largely priced in the company's growth and earnings outlook, leaving limited room for additional upside without new catalysts, Morgan Stanley said in a Wednesday note.
The brokerage said the insurer's technology-driven growth and underwriting momentum leave it well positioned to achieve net income profitability by the end of 2027, while forecasting gross written premium growth of about 35% in 2026 and 30% in 2027.
Lemonade's ability to compete in a softening auto insurance market while maintaining operating leverage and advancing toward profitability will be key to its long-term growth, the report added.
Morgan Stanley downgraded the stock to equal weight from overweight with a price target of $75.
Lemonade shares were down 9% in Wednesday trading.
Price: $70.56, Change: $-7.03, Percent Change: -9.06%