MILE - Lemonade stock slips after Piper Sandler cuts to Neutral as net losses persist
- Lemonade ( NYSE: LMND ) shares are inching down 1.2% in Monday premarket trading after Piper Sandler analyst Arvind Ramnani downgraded the insurer to Neutral from Overweight.
- Ramnani pointed out that risks of Lemonade's ( LMND ) "prolonged timeline to profitability" as well as its acquisition of Metomile ( MILE ) continue to weigh on the stock, he wrote in a note to clients. Shares are off over 77% Y/Y.
- Furthermore, Lemonade’s ( LMND ) substantial investments behind customer acquisition (S&M at ~110% of 2021 revenue), technology (40%), and G&A (57%), have pressured profitability," Ramnani explained.
- The analyst is expecting Lemonade's ( LMND ) high net loss ratio of approximately 93% to continue, "which may drive the company to pull back on investments to build out its product portfolio, pressuring outyear growth," the note said.
- SA's Quant Rating , meanwhile, screens LMND shares as a Sell, while the average Wall Street Analyst views the stock as a Hold.
- Check out SA contributor Action Biased's bearish analysis on Lemonade .
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Lemonade stock slips after Piper Sandler cuts to Neutral as net losses persist