Lemonade surges after Morgan Stanley turns bullish on Tesla partnership

Shares of insurer Lemonade LMND.N rise 14.52% to $66.13 after Morgan Stanley upgrades to "overweight" from "equal weight"

Brokerage cites LMND's Tesla TSLA.O partnership represents an important first step and gives Lemonade first-mover advantage in data analysis and on-the-ground experience

LMND is offering a 50% rate cut for drivers of TSLA electric vehicles when the automaker's Full Self-Driving (FSD) driver assistance software is steering because it had data showing it reduced accidents

"As the auto market continues to evolve toward autonomous, we expect Lemonade to expand its autonomous exposure geographically, putting it on the path to 10x its business" -MS

MS also raised PT to $85 from $80 which is a 47.2% upside to the stock's last close

Five of 12 analysts rate stock "strong buy" or "buy", four "hold" and three "sell" or "strong sell"; their median PT is $65 - data compiled by LSEG

Including session's move, LMND down 6.2% YTD