Why Lemonade Was a Sour Stock Today
Monday was hardly a sweet start to the trading week for Lemonade (NYSE: LMND). The next-generation insurer's stock was dinged by an analyst's downgrade; as a result, the company's share price was down by nearly 1% in midafternoon trading, against a buoyant and rising S&P 500 index.
Piper Sandler prognosticator Arvind Ramnani is the person behind the downgrade. Monday morning, he changed his recommendation on Lemonade from overweight (buy) to neutral. He also reduced his price target on the stock to $20 per share from the preceding $24.
Ramnani's move is based on concerns about what he termed "the prolonged timeline to profitability" for the habitually loss-making Lemonade. The analyst also noted that integration risk from Metromile, the upstart auto insurer that Lemonade struck a deal to acquire last November, is also a potential drag on the company's stock.
Source Fool.com
