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Lemonade, Inc. (NYSE:LMND) Continues to Impress Despite "Underweight" Rating

  • Lemonade, Inc. (NYSE:LMND) maintains strong growth with a 214% increase in stock price over the past year.
  • Morgan Stanley raises its price target for Lemonade from $45 to $49, despite maintaining an "Underweight" rating.
  • Lemonade's market capitalization reaches approximately $5.77 billion, with a notable surge towards profitability on an adjusted EBITDA basis.

Lemonade, Inc. (NYSE:LMND) is a technology-driven insurance company that uses artificial intelligence to streamline its services. The company offers various insurance products, including renters, homeowners, and pet insurance. Lemonade's innovative approach sets it apart from traditional insurers, as it leverages digital tools like chatbots for customer onboarding and policy claims. This digital foundation allows Lemonade to be agile and improve the accuracy of its algorithms as it gains more customers and data.

On November 10, 2025, Morgan Stanley maintained its "Underweight" rating for Lemonade, suggesting a cautious stance on the stock. Despite this, the firm raised its price target from $45 to $49, as highlighted by TheFly. At the time of the announcement, Lemonade's stock was trading at approximately $78.90, reflecting a significant increase from its previous lows.

Lemonade has experienced a remarkable surge, with its stock price increasing by 214% over the past year. This growth is impressive, yet 42% of analysts covering the stock recommend selling. The stock is currently trading at $78.87, with a recent price increase of $3.85, or 5.13%. During the trading day, the stock fluctuated between a low of $75.52 and a high of $80.12.

The company's market capitalization stands at approximately $5.77 billion, with a trading volume of 2,800,647 shares. Lemonade is edging closer to profitability on an adjusted EBITDA basis, consistently reporting high growth and improving financial performance. The third quarter was particularly strong, contributing to the market's positive reception of Lemonade's progress. Despite the "Underweight" rating, Lemonade's innovative approach and strong financial performance continue to attract investor interest.