Keefe, Bruyette & Woods Maintains Outperform on Root, Lowers PT to $165

Keefe, Bruyette & Woods Maintains Outperform on Root, Lowers PT to $165

Keefe, Bruyette & Woods (KBW) has maintained its "outperform" rating on Root Inc. (NASDAQ:ROOT) while lowering its price target (PT) to $165, as reported on July 02, 2025. The research firm cited the company's strong quarterly earnings and positive outlook for the future.

Root Inc. reported earnings per share (EPS) of $0.45 for the last quarter, surpassing the consensus estimate of $0.40. The company's revenue also increased by 12.5% year over year, driven by growth in its digital and mobile banking segments. KBW highlighted the company's strong performance in these areas and its ability to maintain its market position.

Despite the positive outlook, KBW lowered its price target from $170 to $165, reflecting a potential upside of 11.3%. The firm cited the company's recent acquisitions and the need for further integration, which may impact its near-term earnings.

Root Inc. has received a mix of ratings from other analysts. While KBW has an "outperform" rating, other firms have varying opinions. For instance, Roth Capital has a "buy" rating with a price target of $180, while Wall Street Zen has a "hold" rating with a target of $170.

Institutional investors have also shown interest in Root Inc. In the first quarter of 2025, several hedge funds increased their stakes in the company. GQG Partners LLC acquired a new stake worth $300 million, while GAMMA Investing LLC lifted its stake by 15,000%. These investments indicate a positive sentiment among institutional investors.

Overall, while KBW maintains an optimistic view on Root Inc., the lowered price target reflects a cautious outlook on the company's near-term earnings and integration efforts. Investors should closely monitor Root Inc.'s progress in these areas to gauge its future performance.

References:
[1] https://www.marketbeat.com/instant-alerts/cincinnati-financial-nasdaqcinf-given-new-16800-price-target-at-keefe-bruyette-woods-2025-08-05/
[2] https://au.investing.com/news/analyst-ratings/keefe-bruyette--woods-raises-global-payments-stock-price-target-to-87-93CH-3966200
[3] https://www.investing.com/news/analyst-ratings/keefe-bruyette--woods-raises-carlyle-group-stock-price-target-to-66-93CH-4177711