Lemonade initiated with an Underperform at BMO Capital

BMO Capital analyst Michael Zaremski initiated coverage of Lemonade with an Underperform rating and $10 price target. Lemonade’s current gross expense ratio is far above peers and is more reliance on reinsurance than peers, which is a risk as reinsurance appetites could meaningfully shrink if loss ratios deteriorate, Zaremski tells investors in a research note.