Lemonade Stock Heats Up as Wall Street Warms

Lemonade ( (LMND) ) has risen by 10.04%. Read on to learn why.

Lemonade’s stock climbed 10.04% over the past week as investors responded to a wave of upbeat analyst moves and brisk options trading, even as the company remains unprofitable. Morgan Stanley upgraded Lemonade from Underweight to Equal Weight and lifted its price target to $85, highlighting strong growth in the auto segment, improving loss ratios and a clearer path to EBITDA profitability by late 2026. Piper Sandler also reaffirmed a Hold rating with the same $85 target, reinforcing the sense that the once-embattled insurtech is maturing into a more stable, growth-focused story.

Underpinning the renewed optimism is Lemonade’s accelerating top-line performance. The company’s latest quarterly results showed revenue rising to $194.5 million from $136.6 million a year earlier, while its GAAP net loss narrowed significantly from $67.7 million to $37.5 million. Analysts at firms such as Keefe Bruyette and Citizens JMP have been steadily ratcheting up their targets in recent days, citing stronger growth prospects, better-than-expected earnings trends and operational efficiencies, particularly in autos. Technical indicators remain supportive, with a “Buy” signal and standout year‑to‑date performance well into triple digits.

Options activity has added further fuel to the rally. Bullish call buying has run at roughly twice normal levels, with elevated interest around out‑of‑the‑money strikes and a low put/call ratio pointing to increasingly positive sentiment on Lemonade’s future. This optimism comes despite a series of insider stock sales from senior figures, which keeps some investors cautious about near-term valuation. With earnings due in early March and the market now focused on the company’s ability to convert rapid growth into sustainable profits, Lemonade’s recent 10.04% advance reflects growing conviction that the digital insurer’s turnaround is gaining traction—albeit with lingering risks attached.