Citizens Expects Positive Q4 Results for Lemonade (LMND) Driven by Pricing Trends, Lower Losses

Lemonade Inc. (NYSE:LMND) is one of the under-the-radar AI stocks to buy. On January 16, Citizens increased the price target for Lemonade to $85 from $80 while maintaining an Outperform rating. The firm expects Q4 2025 results to show lighter catastrophe losses and limited mark-to-market impacts, with investor attention focused on pricing trends despite weakness in property lines.

The firm noted that while property pricing is declining, returns remain strong and casualty lines continue to see solid rate increases, indicating a market in transition rather than one that is broadly soft.

On January 14, Cantor Fitzgerald raised the price target for Lemonade Inc. (NYSE:LMND) to $92 from $85 with an Overweight rating. The firm noted that an initial positive outlook on insurance brokers seems premature and overly optimistic, as near-term fundamentals are expected to decline before showing improvement. While the subgroup remains of interest, the firm anticipates negative consensus organic growth revisions in the interim.

Citizens Expects Positive Q4 Results for Lemonade (LMND) Driven by Pricing Trends, Lower Losses

Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.

Lemonade Inc. (NYSE:LMND) provides various insurance products in the US, Europe, and the UK. The company offers renters & homeowners, building, car, pet, and life insurance products, as well as landlord insurance products.

While we acknowledge the potential of LMND to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LMND and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.