This Stock Is Up 78% in Just 3 Months. Here's Why It Could Go Even Higher.

Core Viewpoint - Lemonade has shown significant recovery and growth potential after a steep decline in stock price, with nearly 80% gain in the past three months, driven by positive earnings results and an optimistic investor day presentation [2][3]. Financial Performance - The third quarter earnings report highlighted progress towards profitability, with positive cash flow and expectations for adjusted EBITDA profitability by 2026 [4]. - Lemonade's in-force premium grew by 24% year over year, an acceleration from the previous year's 18% growth rate [5]. - The gross loss ratio improved to 73%, surpassing management's target for the first time, and gross profit margin expanded by eight percentage points year over year [5]. Growth Strategy - Management aims to scale in-force premium from $1 billion to$10 billion, with auto insurance expected to be a major growth driver [5][6]. - Lemonade has previously grown its business tenfold in six years and believes it can achieve a 30% annualized growth rate, potentially reaching the $10 billion target in less than nine years [7]. Future Potential - If Lemonade can accelerate its growth rate towards the 30% target and maintain a loss ratio below 75% for several quarters, there could be further upside for the stock [8].