Fed Governor Adriana Kugler to resign
On Thursday, Jefferies analyst Andrew Andersen adjusted the price target for Root, Inc. (NASDAQ: ROOT) stock, raising it to $166 from the previous $150, while reiterating a Buy rating. The stock, currently trading at $139.93, has demonstrated remarkable momentum with a 124% return over the past year, according to InvestingPro data. The company has reported its third consecutive quarter of positive net income, with earnings per share (EPS) of $1.07, surpassing the consensus and Jefferies’ estimate of $0.34.
Root’s financial results have broadly outperformed expectations, showing growth in premiums and policies in force (PIF), as well as improvements in loss ratios (LR) and expense ratios (ER), leading to a reported net combined ratio (CR) of 96%. Andersen notes that while PIF growth is expected to moderate for the remainder of 2025, at approximately 1.5% quarter over quarter, the EPS improvement is largely attributed to better loss ratios.
The analyst also highlights that increased premium retention has provided Root with operating scale. This factor, combined with the company’s financial performance, supports Jefferies’ model that anticipates continued profitability for Root in 2025 and the years following. The new price target of $166 suggests a potential upside of 19% from the previous target. For deeper insights into ROOT’s valuation and 14 additional key investment tips, check out the comprehensive analysis available on InvestingPro.
In other recent news, Root Inc (NASDAQ:ROOT) reported its financial results for the first quarter of 2025, significantly surpassing market expectations. The company achieved an earnings per share (EPS) of $1.07, far exceeding the forecasted $0.17, and reported revenue of $349.4 million, surpassing the anticipated $303.9 million. Root Inc’s net income rose to $18 million, marking a $25 million year-over-year improvement, while gross premiums written increased by 24% compared to the first quarter of 2024. Additionally, the net combined ratio improved by 6 points year-over-year to 96%, indicating enhanced operational efficiency. Root’s strategic initiatives have been effective, as reflected in the 15% revenue beat, underscoring strong company performance. The company also announced new strategic partnerships with Hyundai (OTC:HYMTF) Capital America and Experian (OTC:EXPGF), aiming to expand its distribution channels. Despite challenges such as potential tariff impacts and seasonal storm effects, Root remains focused on long-term growth and expansion into new states. Analyst firms have not provided any upgrades or downgrades at this time, but the company’s robust financial performance has been noted.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.