Lemonade price target lowered to $62 from $65 at Piper Sandler

Piper Sandler lowered the firm’s price target on Lemonade (LMND) to $62 from $65 and keeps a Neutral rating on the shares following quarterly results. The firm notes the beat on adjusted EBITDA versus Piper’s estimates and consensus was driven by strong underwriting results and an increase in net customers added. Guidance suggests upside for both revenue and adjusted EBITDA. Investor concerns seem focused on the increasing stock compensation costs and concerns that Q2 EBITDA guidance implies significantly needed operating leverage to achieve their goal of positive Q4 adjusted EBITDA, adds the firm.