Lemonade, Inc.

Lemonade, Inc. (NYSE: LMND) is a digital-first insurance company providing renters, homeowners, auto, pet, and life insurance across the United States and select European markets, including the United Kingdom. The company operates on a technology-centric platform that integrates customer acquisition, onboarding, underwriting, and claims management, leveraging data analytics to enhance operational efficiency. Its proprietary ecosystem includes tools such as Data Advantage, AI Maya, AI Jim, CX.AI, Forensic Graph, Blender, and Cooper. AI Maya facilitates customer engagement and policy onboarding through natural language interactions, while AI Jim automates the initial claims handling process without human involvement. In addition, Lemonade’s pet insurance offerings cover diagnostics, treatments, medications, accidents, and illnesses, with even entry-level plans including services such as blood tests, urinalysis, lab analysis, and CT scans.

As per Kalkine’s Diversified Opportunities Report published on ‘LMND’ on Mar 05, 2026, Kalkine provided an ‘Buy’ stance on the stock at USD 55.27 based on fundamental analysis and the stock price has now moved up by ~ 20.99% since then.

Noted below are the details of support and resistance levels provided in our previous report:

Rationale:

Despite strong top-line momentum, improving underwriting metrics, and expanding AI-driven capabilities, the company continues to operate with negative earnings and remains dependent on forward execution to achieve sustained profitability. The extended timeline for earnings normalization, rising customer acquisition costs, and reliance on model-driven underwriting introduce elements of uncertainty, while recent growth acceleration and improving fundamentals may already be reflected in market positioning. Additionally, exposure to regulatory constraints, catastrophe risks, and evolving competitive dynamics suggests that the current risk–reward balance may warrant a more measured stance, with a focus on preserving gains amid execution-dependent outcomes.

Valuation (Using Price/Book Value per share Multiple)

Share Price Chart

Conclusion

Strong operational momentum and multiple expansion appear increasingly balanced by ongoing earnings pressures and execution-dependent profitability timelines, supporting a calibrated reduction in exposure at current levels. Henceforth, a "Sell" recommendation on Lemonade, Inc. (NYSE: LMND) has been given at the closing market price of USD 66.87 as on 17 March 2026.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 17 March 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.