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.

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

A financial adviser in a suit talking with a senior client about their life insurance policy.

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.

While we acknowledge the potential of ROOT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ROOT and that has 100x upside potential, check out our report about this cheapest AI stock.

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