Lemonade upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Lemonade (LMND) to Overweight from Equal Weight with a price target of $85, up from $80. The company’s partnership with Tesla (TSLA) “represents an important first step” and gives Lemonade first-mover advantage in data analysis and on-the-ground experience, the analyst tells investors in a research note. Morgan Stanley says that while Lemonade is offering a 50% discount on auto insurance when full self-driving is engaged in Tesla vehicles, the company is maintaining underwriting discipline based on the quotes it viewed. It expects Lemonade to expand its autonomous exposure, driving the scale needed to “meaningfully improve” its long-term earnings profile.