Shares of the artificial intelligence insurance platform Lemonade (LMND 0.79%) traded as much as 4.5% higher this morning after multiple analysts on Friday assigned the company a bullish rating.
The company recently reported an earnings per share loss of $0.90 on total revenue of $28.2 million in the second quarter of 2021. EPS was in line with analysts' estimates, while revenue beat the consensus for the quarter of $26.8 million.
Following earnings, Lemonade stock dropped roughly 11% Thursday, as the loss the company reported in the quarter more than doubled from the second quarter of 2020, while revenue dipped slightly as well.
Today, however, a group of analysts reinstated their bullish outlook on Lemonade. Analysts at Oppenheimer raised their price target from $85 per share to $95, while assigning the company an outperform rating. Analysts at Piper Sandler cut their price target from $103 per share to $98, but maintained a similar overweight rating on the stock. Lemonade currently trades around $80.64 per share.
Lemonade has been a volatile stock, and already has given up much of its initial gains earlier today. But the company is a disruptor in the extremely large insurance market, which generates $5 trillion in premiums annually.
Management at Lemonade believes its specific opportunity is $400 billion, and the company is preparing to jump into the auto insurance space, which could make up a lot of that market opportunity, so I do see a bright future for this company.