Root rises after Jefferies upgrades to 'buy'

Root

01/03/2024 11:55

** Shares of auto insurer Root  ROOT.O  rise 9.3% to $35.10
premarket
    ** Jefferies upgrades ROOT to "buy" from "hold"; raises PT
to $40 from $10, a 19.7% upside to the last close
    ** Brokerage says ROOT's much improved loss ratio - the
ratio of losses paid out to premiums earned - indicates
incremental customer additions are profitable 
    ** Adds that ROOT's loss ratio sets a path to profitable
growth, market share gains, and scalability for a viable
business model
    ** Accelerating growth along with reduced reliance on
reinsurance should allow the company to scale up rapidly -
Jefferies
    ** Two of eight brokerages rate the stock "buy" or higher
and six "hold"; their median PT is $12 - LSEG data
    ** Stock has more than tripled YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))