Lemonade price target raised to $44 from $25 at Piper Sandler

Piper Sandler raised the firm’s price target on Lemonade (LMND) to $44 from $25 and keeps a Neutral rating on the shares after participating in the company’s well-attended investor day in New York City. Highlights included FY25 financial targets and commentary, the company’s longer-term profitability roadmap, a focus on Lemonade Car, as well as product and user experience demos. Lemonade now expects to reach adjusted free cash flow profitability for the full year in FY24, achieve adjusted EBITDA breakeven by year-end FY26, net income breakeven in FY27, and to deliver in-force premium multi-year CAGR of +30%, Piper adds. Looking at FY25, the company expects to deliver adjusted gross profit growth of +50%, increase its growth spend by about 40% and reach $1.2B in in-force premium.