William Blair analyst Adam Klauber has maintained their neutral stance on LMND stock, giving a Hold rating on July 31.
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Adam Klauber has given his Hold rating due to a combination of factors influencing Lemonade’s financial outlook. The company’s in-force premiums and revenue have shown promising growth, exceeding expectations, which is a positive indicator. However, despite the improved net loss ratio and stable attritional gross loss ratio, the adjusted EBITDA remains negative, albeit slightly better than anticipated.
While Lemonade’s decision to reduce its quota share reinsurance program is expected to boost revenue in the coming years, the unchanged adjusted EBITDA guidance suggests that the company is still facing challenges in achieving profitability. The analyst acknowledges the strong underwriting performance and growth in Lemonade’s auto product, but prefers to see further progress towards adjusted EBITDA profitability, anticipated by the end of 2026, before adopting a more favorable stance on the stock.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $36.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LMND in relation to earlier this year.