Lemonade price target lowered to $65 from $85 at Piper Sandler

Piper Sandler lowered the firm’s price target on Lemonade (LMND) to $65 from $85 and keeps a Neutral rating on the shares following Q4 results. The firm told investors that the stock traded down due to the company not moving forward its adjusted EBITDA profitability target despite better underwriting and commentary around initiatives to better drive bunding, price and automation that Piper believes investors think will prove costly. However, the firm believes these concerns are “overly simplistic” given Lemonade is arguably the direct-to-consumer personal lines insurance grocery store more and more automating the ecosystem.