ROOT - Lemonade gets sour rating Hippo Holdings snags Buy rating at Jefferies

Lemonade (NYSE:LMND) stock drops 2.9% in premarket trading after Jefferies analyst Yaron Kinar initiates coverage of the insurtech stock with an Underperform rating, and Hippo Holdings (NYSE:HIPO) gains 2.8% after the analyst assigns a Buy rating. Root (NASDAQ:ROOT), initiated at Hold, slips 1.6%. Kinar sees Hippo (HIPO) as the best positioned in the insurtech group from the customer acquisition cost-to-lifetime value view and its ability to improve loss ratios. The company has group-high customer retention rate of over 80% and 5x LTV from "omnichannel platform, high premiums per policy (>$1,200), attracting less price-sensitive customer, and more touch points," Kinar writes in a note to clients. Sets $8 price target for Hippo (HIPO). Meanwhile, Lemonade (LMND) gets an Underperform rating as he doesn't see its shares fully reflecting the insurance risk and execution risk of shifting its policy-in-force mix from rental and pet to higher-premium per policy products, auto and homeowner. "Mix shift should improve LTV/CAC,

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Lemonade gets sour rating, Hippo Holdings snags Buy rating at Jefferies