Lemonade Inc (NYSE:LMND) shares are soaring Tuesday after Morgan Stanley upgraded the company from Equal‑Weight to Overweight and lifted its price target to $85 from $80.

Morgan Stanley Turns Bullish On Lemonade

Analyst Bob Huang raised Lemonade's rating and price target, noting that the new target implies roughly 47% upside from the stock's current price of $57.74.

Morgan Stanley's bullishness centers on Lemonade's growing role in Tesla Inc's (NASDAQ:TSLA) insurance ecosystem, Investing.com reported. The firm believes the partnership gives Lemonade a valuable early lead in understanding autonomous‑driving risk.

Lemonade has been offering Tesla owners a steep 50% discount on auto insurance when Full Self‑Driving is activated. The discount makes Lemonade an appealing choice for Tesla drivers who regularly use FSD and positions the company as one of the first insurers with real‑world experience underwriting self‑driving risk.

Autonomous Insurance Could Drive Tenfold Growth

The firm expects Lemonade to broaden its autonomous‑insurance footprint as self‑driving technology spreads to more regions and more automakers. Morgan Stanley believes this segment alone could expand Lemonade's business by a factor of ten, with Lemonade Car serving as the primary growth engine.

The bank also argues that scaling up in this category could dramatically improve Lemonade's long‑term earnings power, even though the company still trades at a premium valuation relative to book value.

The Technical Side Of Lemonade

Technical Analysis Lemonade is trading 21% above its 20-day SMA, but it remains 5.1% below its 100-day SMA, highlighting a strong short-term snapback that still needs follow-through to repair the intermediate trend. Shares are up 81.73% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 46.70, which sits in neutral territory and suggests the rally isn't yet stretched. Meanwhile, MACD is at -4.1011 versus a signal line at -5.2468, keeping a bullish momentum setup in place even though the MACD level is still below zero.

RSI in the 30–50 range with bullish MACD indicates momentum leaning bullish.

  • Key Resistance: $75.00
  • Key Support: $64.00

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $46.28. Recent analyst moves include:

  • Morgan Stanley: Upgraded to Overweight (Raises Target to $85.00) (Mar. 17)
  • Keefe, Bruyette & Woods: Underperform (Raises Target to $44.00) (Feb. 24)
  • Cantor Fitzgerald: Overweight (Raises Target to $92.00) (Jan. 14)

Benzinga Edge Rankings: The Benzinga Edge scorecard for Lemonade highlights its strengths and weaknesses compared to the broader market:

  • Momentum: Bullish (Score: 83.09) — The stock is showing strong relative strength versus the broader market, consistent with a momentum-driven tape.

The Verdict: Lemonade,’s Benzinga Edge signal reveals a momentum-driven story, with the scorecard heavily concentrated in Momentum rather than a balanced set of factors. If price can hold above the mid-$60s and press toward $75, the trend can keep improving, but failed follow-through would put the $64 support back in focus.

LMND Price Action: Lemonade shares were up 15.64% at $66.77 at the time of publication on Tuesday, according to Benzinga Pro.

Image: Shutterstock