Update shared on 25 Nov 2025
Fair value Increased 15%The analyst price target for Lemonade has increased notably, rising from $49.63 to $57.00. Analysts cite the company's continued progress in building market share and adapting to evolving industry conditions.
Analyst Commentary
Recent updates from street analysts present a mix of optimism and caution regarding Lemonade's trajectory. Analyst sentiments are split between highlighting the company’s early-stage momentum and ongoing challenges within the industry landscape.
Bullish Takeaways
- Bullish analysts have notably increased their price targets, reflecting confidence in Lemonade's potential for sustained long-term growth.
- There is consensus that Lemonade is still early in its development, presenting further opportunities for expansion and market share gains as the company matures.
- Ongoing strategies to build a distinctive, tech-driven insurance platform are seen as positioning the company favorably for durability and resilience over time.
- Recent progress in execution and adapting to sector challenges is recognized as a key driver behind upward adjustments in valuation outlooks.
Bearish Takeaways
- Bearish analysts remain cautious about Lemonade’s immediate growth prospects, particularly in light of softening cycles forecasted for the wider insurance industry.
- Questions persist regarding the company’s ability to overcome headwinds related to property and casualty pricing slowdowns, which may dampen near-term results.
- Some caution is advised around the pace of execution and the path to profitability, reflecting broader concerns within the commercial insurance space.
What's in the News
- Lemonade has issued updated guidance for the fourth quarter and full year 2025, reflecting higher expectations for in force premium, gross earned premium, and revenue (Company guidance).
- For the fourth quarter, in force premium is projected to reach between $1.218 billion and $1.223 billion. Gross earned premium is expected to be between $283 million and $286 million, with revenue between $217 million and $222 million (Company guidance).
- The company is raising its full year 2025 outlook and now anticipates gross earned premium of $1.044 billion to $1.047 billion along with revenue between $727 million and $732 million (Company guidance).
Valuation Changes
- Consensus Analyst Price Target has risen markedly from $49.63 to $57.00.
- Discount Rate has edged down marginally, from 6.96 percent to 6.96 percent.
- Revenue Growth projection has increased slightly, from 42.73 percent to 42.78 percent.
- Net Profit Margin estimate has fallen significantly, dropping from 11.08 percent to 0.53 percent.
- Future P/E ratio forecast has surged sharply, from 24.34x to 554.59x.
Disclaimer
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