Keefe, Bruyette & Woods upgraded Lemonade (NYSE: LMND) from an "Underperform" to a "Market Perform" rating. The firm maintained its $48.00 price target for the insurance technology company.
The rating change followed a significant selloff in Lemonade's stock on the previous day. This selloff brought the shares closer to the analyst's price target.
Keefe, Bruyette & Woods is more constructive on Lemonade's ability to sustain strong loss ratios in its pet and renters-focused portfolio. This outlook contrasts with competitors in the auto and home insurance markets.