Lemonade (LMND) Stock Forecast & Price Target
Lemonade (LMND) Analyst Ratings
Bulls say
Lemonade Inc concluded a strong FY24, achieving its best quarter ever in 4Q, with in-force premium growth of 26.3% year-over-year and a customer count increase of 20%, reaching 2.43 million customers. The company's operational metrics improved significantly, with the TTM gross loss ratio declining for six consecutive quarters and an adjusted cash flow positivity maintained for the third quarter, indicating robust underlying unit economics and effective cost management through technology. Additionally, management's positive guidance for FY25 targets, including a projected 27.5%-28% growth in in-force premiums and continued revenue growth of 24.4%-24.8%, underscores Lemonade's strong market position and growth trajectory within the insurance industry.
Bears say
Lemonade Inc.'s annual dollar retention rate has declined to 86%, reflecting a strategic shift toward reducing less profitable home insurance customers, which may adversely affect overall growth potential. Additionally, macroeconomic risks, particularly related to increased unemployment and consolidating households, pose significant obstacles as these factors could lead to decreased demand for essential insurance products amid a potential prolonged recession. Despite the company's significant market opportunity in home insurance, the reported gross loss ratio of 63% highlights ongoing financial challenges that could hinder the path to profitability.
This aggregate rating is based on analysts' research of Lemonade and is not a guaranteed prediction by Public.com or investment advice.
Lemonade (LMND) Analyst Forecast & Price Prediction
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