
Lemonade (LMND) Stock Forecast & Price Target
Lemonade (LMND) Analyst Ratings
Bulls say
Lemonade Inc. demonstrated robust financial performance in FY24, culminating in a record-setting fourth quarter, with a year-over-year in-force premium growth of 26.3% and a customer count increase of 20%, bringing the total to 2.43 million. The company's gross loss ratio improved for the sixth consecutive quarter, reaching a historic low of 63%, while it sustained adjusted cash flow positivity for the third straight quarter, indicating strong efficiency and management of expenses. Furthermore, Lemonade's management provided optimistic FY25 guidance, projecting a 27.5% to 28% growth in in-force premiums and a continuous improvement in adjusted EBITDA losses, reinforcing the positive outlook for the company's growth trajectory.
Bears say
Lemonade Inc. has shown a decline in annual dollar retention, decreasing to 86% for the second consecutive quarter, which indicates potential challenges in customer loyalty and profitability as the company shifts its focus towards more profitable growth and away from riskier policyholders. Additionally, the gross loss ratio reported at 63% suggests ongoing financial inefficiencies, reflecting the company's struggle to manage costs relative to its revenues amidst its growth strategy. Finally, macroeconomic risks, particularly rising unemployment and the potential for prolonged recession, pose significant headwinds for Lemonade, as these factors can adversely affect demand for insurance products and overall market stability.
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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