BMO Capital raised the firm’s price target on Lemonade (LMND) to $23 from $15 and keeps an Underperform rating on the shares. The firm cites the company’s announcement that it will retain about 80% of its gross premiums on a go-forward basis, which is meaningfully higher than its prior 45% retention level, the analyst tells investors in a research note. Lemonade should be able to eat more of its cooking as its economics improve, BMO added.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on LMND:
- Cautious Outlook on Lemonade: Sell Rating Due to High Loss Ratio and Reinsurance Risks
- Lemonade price target raised to $26 from $22 at Keefe Bruyette
- Lemonade says reinsurance program is being renewed
- Lemonade call volume above normal and directionally bullish
- Lemonade management to meet with Oppenheimer