Root Receives Mixed Reviews for Its Online Insurance Business

Root  (ROOT) – Get Report shares stumbled Monday after the online auto/renters insurance platform received mixed reviews from analysts.

Root shares recently traded at $17.66, down 7.05%, and have slid 34% since the company’s initial public offering last month.

As for the analysts, Deutsche Bank’s Phil Stefano rated Root a hold with a price target of $20.

The company’s product “stands up very well” in terms of sleekness and ease of use, compared to online competitors, he said.

But Root’s underwriting performance “raises questions that the nascent business model unfortunately does not have answers to yet,” Stefano said.

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