Jefferies has increased its price target for Root (ROOT, Financial), elevating it from $115 to $150, while maintaining a Buy rating on the stock. The investment firm views tariffs as a manageable risk for the well-capitalized and defensive property and casualty sector.
According to Jefferies, auto insurers, like Root, possess the ability to adjust pricing quickly in response to changing market conditions. While loss cost inflation is already a concern within the commercial sector, any tariff impacts could prompt increased financial discipline.
Jefferies anticipates no significant impact from tariffs in the first quarter and sees the most potential within the personal lines segment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Root Inc (ROOT, Financial) is $96.60 with a high estimate of $130.00 and a low estimate of $51.00. The average target implies an downside of 18.71% from the current price of $118.84. More detailed estimate data can be found on the Root Inc (ROOT) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Root Inc's (ROOT, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Root Inc (ROOT, Financial) in one year is $45.18, suggesting a downside of 61.98% from the current price of $118.84. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Root Inc (ROOT) Summary page.
