5 Stocks That Made Millionaires Today

2. Lemonade Inc. (NYSE:LMND)

Lemonade rallied for a third straight day on Tuesday, soaring 15.81 percent to finish at $66.87 apiece, as investors took heart from Morgan Stanley’s rating and price target upgrade for its stock.

In a market note, the investment firm upgraded its rating for Lemonade Inc. (NYSE:LMND) to “overweight” from “equal weight,” alongside a 6 percent higher price target of $85 versus $80 prior.

Even with the rally during the day, the new price target still marked a 27 percent upside potential from Lemonade Inc.’s (NYSE:LMND) latest closing price.

According to Morgan Stanley, the upgrade reflected its optimism for the company following its first-mover advantage to insure autonomous driving.

Lemonade Inc. (NYSE:LMND) in January this year unveiled a car insurance for autonomous vehicles, beginning with Tesla’s full self-driving (FSD) vehicles.

The new offering also cuts per-mile rates for FSD-engaged driving by approximately 50 percent, reflecting what the data shows to be significantly reduced risk during autonomous operation. Lemonade expects further reductions as Tesla releases FSD software updates, which are anticipated to make the cars even safer over time.

According to Morgan Stanley, the said product “positions Lemonade as an early mover in the autonomous vehicle insurance market.”

It said that it sees further growth momentum tied to improving technology that leads to more savings for customers.