LMND (USA) - Morgan Stanley raised its price target to $85Lemonade IncNYSE:LMNDzAngusLemonade is still up around 64% over the past twelve months, but has had a BIG dip (ironically on good news) from its high at nearly $100, all the way back down to a bit below $50. It started to recover a little and is now back to the $58 mark, but still leaves plenty of upside if it recovers. This is an AI-first insurance company covering renters, homeowners, pets, cars, and life - which I like the idea of - ie using AI to analyse risk. The recovery case got a BIG boost earlier this year when Lemonade announced a partnership with Tesla, positioning itself as a first-mover in autonomous vehicle insurance by cutting auto premiums roughly in half when Tesla's Full Self-Driving mode is engaged. That news sent the stock surging around 22% in January and drove it to nearly $100. Then came earnings in February. Revenue for Q4 came in at $228 million, up over 53% year on year, and the gross loss ratio hit an all-time low of 62%. The stock actually opened 14% higher on the day. But it reversed hard. The problem was profitability timing. Lemonade reported that they didn't expect a positive adjusted EBITDA until Q4 2026, with full-year profitability not until 2027, and at a $100 valuation there was no room for that kind of patience and investors bailed. Today however, Morgan Stanley published an Overweight upgrade and an $85 price target, which looks like it may be the catalyst that gets this moving again especially at its current discounted pricing after that drop. Technically, the chart tells a story of a stock that ran hard, got extended, got smashed, and has just started to recover from that dip. I like how the chart looks. Nice start of a recovery for the price with it now above its 20 day moving average. I like that the RSI is at a value area but pointing up, and I like that the MACD has crossed over the signal line while still under the 0 line. All the them are basically showing momentum is coming back into the stock. I really do like the idea of drivers being rewarded financially (ie insurance discount) based on using full self driving. If you think this is the future, then this one might be worth a watch. .................................................. PLEASE NOTE: Nothing I post is trading advice. All investing involves risk, and past performance doesn't predict future results. Trends can and do end. For 2026, my goal is to try and post one new asset each trading day. Something outside the usual gold, silver, BTC, or big tech names. I like to find stocks worldwide showing steady trends with some good gains, a recent pullback, and signs of renewed strength. I don't necessarily hold positions in these. They are simply companies I find interesting at the time of posting. I'll often revisit them within a week to see how they went and share any updates. If you enjoy these posts, please BOOST and FOLLOW ME to discover more under-the-radar stocks and businesses from around the world. ..................................................