Lemonade Inc's stock fell 6.36% as it crossed below the 5-day SMA, despite the broader market's gains with the Nasdaq-100 up 0.67% and the S&P 500 up 0.56%.
The company announced a significant 50% reduction in per-mile insurance rates for Tesla drivers using the Full Self-Driving (FSD) system, which is expected to enhance its market competitiveness and attract high-value customers. This move comes amid strong investor anticipation for the upcoming earnings report on February 24, where a loss of 40 cents per share is expected, showing improvement from the previous year.
This rate cut could position Lemonade favorably in the insurance market, especially as it leverages data from Tesla to optimize its offerings. However, the stock's decline indicates a potential sector rotation, as investors may be reallocating their portfolios despite positive developments.
Wall Street analysts forecast LMND stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMND is 77.60 USD with a low forecast of 40.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast LMND stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMND is 77.60 USD with a low forecast of 40.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
3 Hold
1 Sell
Hold
Current: 91.280
Low
40.00
Averages
77.60
High
98.00
Current: 91.280
Low
40.00
Averages
77.60
High
98.00
Citizens
Outperform
maintain
$80 -> $85
2026-01-16
Reason
Citizens
Price Target
$80 -> $85
AI Analysis
2026-01-16
maintain
Outperform
Reason
Citizens raised the firm's price target on Lemonade to $85 from $80 and keeps an Outperform rating on the shares. Fourth quarter results are expected to reflect lighter catastrophe losses and limited mark-to-market impacts, with attention focused on pricing trends amid weakness in property lines, the analyst tells investors in a research note. While property pricing is declining, returns remain strong and casualty lines continue to see solid rate increases, pointing to a market in transition rather than broadly soft, the firm says.
Truist
Arvind Ramnani
Buy
initiated
$98
2026-01-06
Reason
Truist
Arvind Ramnani
Price Target
$98
2026-01-06
initiated
Buy
Reason
Truist analyst Arvind Ramnani initiated coverage of Lemonade with a Buy rating and $98 price target. Lemonade's digital-first approach to the insurance industry provides the company with significant structural advantages such as a lower overall cost base relative to traditional insurers, the analyst tells investors in a research note. Lemonade leverages AI, data, and digital tools across entire business, including customer service, claims, processing, and underwriting decisions, which helps to reduce costs and biases, Truist says.
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Morgan Stanley
Underweight -> Equal Weight
upgrade
$53 -> $85
2025-12-16
Reason
Morgan Stanley
Price Target
$53 -> $85
2025-12-16
upgrade
Underweight -> Equal Weight
Reason
Morgan Stanley upgraded Lemonade to Equal Weight from Underweight with a price target of $85, up from $53. As the company continues to consistently deliver on outsized growth from autos, while seeing overall loss ratio improvements, Lemonade "presents a unique story" with total loss ratio stability and a clear path to EBITDA profitability by Q4 of 2026, the analyst tells investors.
Keefe Bruyette
Underperform
maintain
$35 -> $40
2025-11-25
Reason
Keefe Bruyette
Price Target
$35 -> $40
2025-11-25
maintain
Underperform
Reason
Keefe Bruyette raised the firm's price target on Lemonade to $40 from $35 and keeps an Underperform rating on the shares. The firm sees modest downside to consensus estimates in 2026, the analyst tells investors in a research note.
About LMND
Lemonade, Inc. offers renters, homeowners, car, pet, and life insurance. The Company operates through the United States, Europe, including the United Kingdom, providing insurance products to customers through various sales channels. The Company's digital substrate enables it to integrate marketing and onboarding with underwriting and claims processing, collecting, and deploying data. Its technology includes Data Advantage, AI Maya, AI Jim, CX.AI, Forensic Graph, Blender, and Cooper. AI Maya, its onboarding and customer experience bot, uses natural language to guide customers in joining the Company. AI Jim, its claims bot, takes the first notice of loss from its customer without human intervention. It offers pet insurance that covers diagnostics, procedures, medication, accidents or illness. Even its basic pet insurance offering covers blood tests, urinalysis, lab work, and computed tomography scans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
