Citizens Expects Positive Q4 Results for Lemonade (LMND) Driven by Pricing Trends, Lower Losses

Core Viewpoint - Lemonade Inc. (NYSE:LMND) is identified as a promising AI stock, with recent price target increases from Citizens and Cantor Fitzgerald indicating positive market sentiment despite challenges in property pricing [1][3]. Group 1: Price Target Adjustments - Citizens raised the price target for Lemonade to $85 from $80 while maintaining an Outperform rating, anticipating lighter catastrophe losses and limited mark-to-market impacts in Q4 2025 [1]. - Cantor Fitzgerald increased the price target for Lemonade to $92 from $85 with an Overweight rating, although they caution that the positive outlook on insurance brokers may be premature due to expected near-term declines in fundamentals [3]. Group 2: Market Trends and Performance - The insurance market is experiencing a transition, with property pricing declining but strong returns and solid rate increases in casualty lines, suggesting resilience rather than a broadly soft market [2]. - Citizens expects positive Q4 results for Lemonade driven by pricing trends and lower losses, highlighting the company's diverse insurance offerings including renters, homeowners, car, pet, and life insurance products [5].