Root rises after KBW upgrades to 'outperform'

Root

26/02/2024 12:32

** Shares of auto insurer Root  ROOT.O  rise 1.4% to $17.20
premarket
    ** KBW upgrades ROOT to "outperform" from "market perform";
raises price target to $22 from $10, a 29.7% upside to the last
close
    ** Brokerage notes ROOT's stronger premium growth and more
efficient customer acquisition spend
    ** Says it's still early days of the broader personal auto
insurance profitability resurgence
    ** ROOT's company-specific actions provide path to narrowing
its net losses and ultimately reaching profitability - brokerage
    ** KBW expects beats and raises to propel the stock higher
over the coming quarters
    ** Two of eight brokerages rate the stock "buy" or higher
and six "hold"; their median PT is $12 - LSEG
    ** Stock more than doubled in 2023

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