Why Lemonade Stock Was Falling Today
Shares of Lemonade (NYSE: LMND) were turning sour today after the insurtech company got an analyst downgrade from Morgan Stanley.
The bearish commentary was enough to push the stock down 9.6% as of 2:29 p.m. ET, putting the brakes on its recovery this year.
Morgan Stanley analyst Bob Huang initiated coverage on Lemonade this morning with an underweight rating, saying the path to profitability remains challenging, and investors can find better risk/reward trade-offs elsewhere on the market as Lemonade trades at an enterprise value-to-revenue multiple of 3, making it expensive considering it's still reporting substantial losses. Huang also gave the stock a price target of $14, implying a 29% decline in the stock based on its closing price on Friday.
Source Fool.com
