Lemonade (LMND) Faces Downgrade Amid Challenging Market Conditions

Apr 08, 2025

Morgan Stanley has downgraded Lemonade Inc. (LMND, Financial) from "Equal-weight" to "Underweight," citing increased challenges ahead for the insurance company. Analyst Bob Jian Huang highlighted the company's attempt to enter the highly competitive and uncertain auto insurance market as a key concern. He noted that the current market environment, intensified competition from established firms, and macroeconomic uncertainties could hinder Lemonade's ambitious plan to expand its business tenfold. Additionally, the company is still years away from achieving profitability. Following the downgrade, Lemonade's stock fell by 4.0% during midday trading.

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