Lemonade Inc. (LMND) PT Lowered to $27 at BofA Securities on Valuation and Catastrophe Losses

May 12, 2021 6:58 AM EDT
Get Alerts LMND Hot Sheet
Price: $106.17 +4.75%

Rating Summary:
    3 Buy, 3 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 7 | New: 31
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BofA Securities analyst Joshua Shanker lowered the price target on Lemonade Inc. (NYSE: LMND) to $27.00 (from $29.00) after 1Q21 results missed the Street consensus of a $0.75 loss per share due to Texas winter freeze catastrophe losses. Quarter-end gross premiums in-force of $251.7 exceeded the forecast of $240.4 and was above guidance offered on March 1 of $241-246mn.

The analyst reiterated an Underperform rating, stating "Our price objective is based on 2x revenue plus excess capital in 2028. We have pushed out the launch of Lemonade Car into 4Q21 as opposed to 3Q21. Lower premium contribution from auto and a slightly lower growth outlook indicate lower premium in-force in 2027 compared with our prior forecast".

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