Wells Fargo Downgrades PT on Root from $142 to $118, Maintains Equal Weight Rating

Root, Inc. (NASDAQ:ROOT) is one of the top stocks that Grok recommended. On July 10, Wells Fargo downgraded the price target on Root, Inc. (NASDAQ:ROOT) from $142 to $118, maintaining its Equal Weight rating on the stock.

Elyse Greenspan from Wells Fargo lowered ROOT’s price target ahead of the company’s Q2 2025 results scheduled on August 6. Wall Street expects the company to post earnings per share of $0.22 and revenue of around $338.35 million. The company had a notable Q1 with partnership expansions, launching new strategic collaborations with Hyundai Capital America and Experian.

Greenspan mentioned that Root’s focus should be on pricing, loss trend, and reserves for P&C companies, organic and margin for brokers, and sales for life companies. The company also expects higher loss ratios in Q2 and Q3 due to seasonal factors such as convective storms and the hurricane season.

Root, Inc. (NASDAQ:ROOT) is a technology insurance company that offers direct-to-customer insurance products. It provides auto and renters insurance products underwritten by Root Insurance Company and Root Property & Casualty.

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Disclosure: None. This article is originally published at Insider Monkey.