Root (NASDAQ:ROOT) stock is taking off on Friday after Citron Research analysts released a bullish report on the auto insurance company.
To start off with, the report claims that ROOT stock could climb as high as $60 per share. It bases this off of insurance company Lemonade’s (NYSE:LMND) current valuation. However, the firm also notes that this is closer to “voodoo math.” Instead, it says that the stock is at least worth its IPO price of $27 per share.
Citron Research’s Andrew Left also took to Twitter (NYSE:TWTR) in a live feed to discuss ROOT stock. In the video, he claims that ROOT is poised for growth and points out its strong collection of tech investors.
Here’s a snippet of what Left had to say about ROOT stock in his live stream.
“We know one thing about car insurance. Even if investors’ attention turns to something else tomorrow, this is not going away. I don’t care if you’re going to drive a Tesla or which electric car you choose to drive, you’re going to have to have insurance for that particular electric car. And if Root can just get 2% of the insurance business of the market, which I think they can, you’re looking at a $50, $60, $70 stock.”
The report highlights why the firm believes that there’s plenty of room for ROOT stock to run higher. That includes claims that the company is a misunderstood short stock. It also mentions that it’s the most shorted stock on the market.
The bullish call for ROOT stock has shares seeing heavy trading today. As of this writing, more than 17 million shares of the stock have changed hands. For comparison, the stock’s daily average trading volume is closer to 2.7 million shares.
ROOT stock was up 13.5% as of noon Friday but is down 9% since the start of the year.
ROOT is far from the only stock seeing major movement today.
Plenty of other stocks are rising and falling as trading continues on Friday. A few of those worth highlighting are Elite Education (NASDAQ:EEIQ), GameStop (NYSE:GME), and Nio (NYSE:NIO). Investors can learn more with the following content from InvestorPlace.com.
More Stocks on the Move Today
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- Reddit Stocks: What to Know about r/WallStreetBets Faves GME, AMC, KOSS
- NIO Stock: Production Halt Sends EV Maker Nio Reeling Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.