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LMND leverages AI and multi-product expansion to drive accelerating premium growth and targets $1.19B revenues by 2026, but profitability remains out of reach.
In January, Lemonade debuted an autonomous car insurance product. Last week, Morgan Stanley boosted its price target on Lemonade from $80 to $85, in part due to the promise of that new offering.
The Morgan Stanley pundit now believes the stock is a buy. He waxed positive about the company's recent collaboration with a monster EV maker.
Lemonade (LMND) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Upstart trades at $28, below its median analyst target of $50, as its AI lending models process record loan volume. Lemonade's AI insurance platform posted 50%-plus revenue growth and is guiding for over 60% growth in 2026.
Analyst Bob Huang raised Lemonade's rating and price target, noting that the new target implies roughly 47% upside from the stock's current price of $57.74.
Lemonade's diversified insurance operation heavily leverages technology, including artificial intelligence. As such, it's well-equipped to figure out how newer automobiles with self-driving technology onboard can and should be insured.