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.
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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