Root price target raised to $78 from $64 at Wells Fargo

Wells Fargo analyst Elyse Greenspan raised the firm’s price target on Root (ROOT) to $78 from $64 and keeps an Equal Weight rating on the shares. Root’s operating income per share beat consensus estimates, and while PIF growth did slow in the quarter, the company noted that the maturation of its book has reduced churn and the company is seeing strength in the partnership channel, the analyst tells investors in a research note. Root’s outlook has improved now that the company has demonstrated an ability to generate an operating profit and the restructuring of the company’s term loan facility and the decrease in interest relieves the pressure of capital constraints that were holding the company back from growing, Wells argues.