- Morgan Stanley downgrades Lemonade (LMND, Financial) to underweight due to growth challenges.
- The firm's price target lowers from $35 to $24 amidst profitability concerns.
- Wall Street analysts expect a potential upside of over 21% from current prices.
Amid ongoing challenges, Morgan Stanley has downgraded Lemonade Inc. (NYSE: LMND) to 'underweight.' In a critical move, the investment bank cited difficulties in achieving growth targets, attributing these hurdles to tariffs, competition, and prevailing macroeconomic uncertainties. Consequently, Morgan Stanley has revised its price target for Lemonade from $35 to $24, a significant change reflecting the company's struggle with maintaining profitability. This adjustment has led to a nearly 3% dip in shares.
Wall Street Analysts' Forecasts
According to predictions from 7 top analysts, the average one-year price target for Lemonade Inc. (LMND, Financial) stands at $30.57. This range includes a high forecast of $60.00 and a low of $15.00. With the current trading price at $25.12, the average target suggests a potential upside of 21.70%. For an in-depth analysis of these estimates, visit the Lemonade Inc (LMND) Forecast page.
Brokerage Recommendations
Currently, 10 brokerage firms provide a consensus recommendation for Lemonade Inc. (LMND, Financial), resulting in an average rating of 3.4. This score indicates a 'Hold' status on a scale where 1 is a Strong Buy and 5 is a Sell. The cautious sentiment reflects the market's need for Lemonade to overcome its present challenges.
GuruFocus' GF Value Estimate
According to GuruFocus estimates, the projected GF Value for Lemonade Inc. (LMND, Financial) in one year is pegged at $37.96. This estimate indicates a substantial upside of 51.11% from the current price of $25.12. The GF Value is GuruFocus' assessment of what the stock should ideally trade at, calculated through historical multiples, past business growth, and future performance projections. For more comprehensive insights, access the Lemonade Inc (LMND) Summary page.
