
Root (ROOT) Stock Forecast & Price Target
Root (ROOT) Analyst Ratings
Bulls say
Root Inc. has raised its estimates for earnings per share (EPS) for the fiscal years 2024 to 2026, reflecting significantly improved profitability trends driven by a strong third-quarter performance, reduced interest expenses from debt refinancing, and lowered direct marketing expenditures. The company's ability to leverage telematics and segmentation, alongside diversifying its distribution channels, is expected to be pivotal for ongoing growth and profitability as it navigates the current auto insurance cycle. Additionally, despite anticipated minor improvements in loss ratios, the forecasted rise in premium per policy suggests a positive trajectory for Root's financial health, with expectations of achieving positive EPS by 2026 supported by increased fee revenues.
Bears say
Root Inc. faces a challenging environment as prevailing risk-off market sentiment negatively impacts unprofitable insurtechs, casting a shadow over its financial stability. Additionally, heightened competition among auto insurers is significantly hindering Root's ability to attract new customers and maintain its existing clientele, further complicating its growth prospects. These factors contribute to a bleak outlook for Root's stock, reflecting fundamental concerns regarding its profitability and market position.
This aggregate rating is based on analysts' research of Root and is not a guaranteed prediction by Public.com or investment advice.
Root (ROOT) Analyst Forecast & Price Prediction
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