Update shared on23 Aug 2025
Fair value Increased 13%Lemonade’s analyst price target has been raised from $39.86 to $45.12, as improving growth in key segments and progress toward profitability are partially offset by competitive pressures and softening market conditions.
Analyst Commentary
- Bullish analysts highlight continued strong growth in Lemonade's car insurance and European segments, as well as ongoing progress toward profitability and improving loss ratios.
- Bearish analysts note increased competition and “late soft” market conditions in personal lines, with many insurers struggling to meet growth expectations.
- Sector-wide, cautious optimism exists for growth opportunities in commercial lines, but selectivity is recommended due to shifting market dynamics.
- Softening reinsurance pricing and reduced premium ceding by Lemonade are viewed as trends impacting profitability, though the company’s latest results are seen as in line with expectations.
- General market transition following multiple years of favorable property & casualty pricing is prompting analysts to re-evaluate targets, with the broader personal auto segment facing intensified competitive pressures.
What's in the News
- Lemonade launched Lemonade Car in Indiana, expanding its U.S. presence to states covering around 42% of the national car insurance market.
- The company was dropped from multiple value-related Russell indices, including the Russell 3000 Value, 2500 Value, 2000 Value, 3000E Value, and Small Cap Comp Value indices.
Valuation Changes
Summary of Valuation Changes for Lemonade
- The Consensus Analyst Price Target has significantly risen from $39.86 to $45.12.
- The Future P/E for Lemonade has significantly risen from 19.89x to 22.09x.
- The Net Profit Margin for Lemonade remained effectively unchanged, moving only marginally from 11.07% to 11.02%.
Disclaimer
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