
Lemonade (LMND) Stock Forecast & Price Target
Lemonade (LMND) Analyst Ratings
Bulls say
Lemonade Inc has demonstrated significant growth potential within the insurance sector, evidenced by an increase in bundling from approximately 1% to 5%, which may lead to premium growth exceeding 30% by the second quarter of 2025. The company has effectively leveraged artificial intelligence to halve its loss adjustment expense (LAE) ratio from 13% to 7% while experiencing a claims volume increase of over 2.5 times, indicating improved profitability. Additionally, Lemonade's strategic focus on technology, data, and design to enhance customer experience positions it well for sustained operational leverage and long-term growth, particularly as it approaches key premium milestones of $2 billion and beyond.
Bears say
Lemonade Inc. faces a challenging financial outlook primarily due to its lack of profitability on an operating EPS basis, requiring valuation based on revenue rather than earnings. Additionally, macroeconomic risks, including increased unemployment and household consolidation, pose significant headwinds for the company, particularly during prolonged recessions which may dampen insurance demand. Lastly, the company's reliance on direct-to-consumer (DTC) channels in a market that has historically been slow to adopt such purchasing methods exacerbates its risk exposure amidst a competitive and evolving insurance landscape.
This aggregate rating is based on analysts' research of Lemonade and is not a guaranteed prediction by Public.com or investment advice.
Lemonade (LMND) Analyst Forecast & Price Prediction
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