Auto Draft

Lemonade Inc. (NYSE:LMND) is one of the 10 Stocks That Made Millionaires Today.

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.

A Tesla car. Photo from Tesla website

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.

While we acknowledge the risk and potential of LMND as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LMND and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.