Root stock up 300% in ten days is not out of juice yet: Jefferies

By:
on Mar 1, 2024
Listen
  • Jefferies analyst sees upside in Root Inc to $40 per share.
  • Yaron Kinar turned bullish on $ROOT after its Q4 earnings.
  • Root stock has already gained nearly 300% in ten days.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Root Inc (NASDAQ: ROOT) has close to quadrupled over the past ten days but a Jefferies analyst is confident the stock could still push further to the upside.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Root stock could hit $40 later this year

Copy link to section

Yaron Kinar upgraded the online car insurance company to “buy” this morning and raised his price target to $40 that suggests another 25% upside from here.

He’s bullish on Root stock primarily because the Nasdaq-listed firm reported “better-than-industry target loss ratio” in its recent earnings report.  

Its gross loss ratio narrowed to 60.9% in Q4 – down from 78.1% a year ago and laid out a “path to profitable growth and scalability” as well, the analyst added.

You can read the letter to shareholders of $ROOT on this link.

Root more than doubled its revenue in Q4

Copy link to section

Note that Root Inc also saw its revenue more than double on a year-over-year basis in its fourth financial quarter. According to Jefferies analyst Yaron Kinar:

Accelerating growth, along with reduced reliance on reinsurance, show allow the company to scale up rapidly.

Kinar recommends owning Root stock as he’s convinced the Ohio-based company will grow revenue by a whopping 110% in 2024E and another 35% the year after.

His research note also told clients that $ROOT will likely continue to grow its market share moving forward. The tech driven insurer, however, does not currently pay a dividend yield.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
USA Earnings Reports North America Services Stock Market Tech World