Root upgraded to Outperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst Thomas McJoynt-Griffith upgraded Root to Outperform from Market Perform with a price target of $22, up from $10. Even after the stock doubled post-earnings, Root still has a negative $132M enterprise value, and its cash burn has slowed significantly, the analyst tells investors in a research note. The firm thinks the company is in the early innings of a broader personal auto profitability resurgence, and says its company-specific actions provide good visibility to it narrowing net losses and ultimately reaching profitability. Keefe expects “beat-and-raises to propel the stock higher over the coming quarters.”