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Investing.com - Keefe, Bruyette & Woods raised its price target on Rocket Cos Inc. (NYSE:RKT) to $15.00 from $14.00 on Tuesday, while maintaining a Market Perform rating on the stock.
The firm adjusted its earnings estimates for the mortgage lender following Rocket’s third-quarter guidance and lower Mortgage Bankers Association volume expectations. KBW now forecasts EPS of $0.11 for 2025, $0.70 for 2026, and $0.97 for 2027. InvestingPro data shows the company maintains strong liquidity with a current ratio of 43.38, though three analysts have recently revised their earnings estimates downward.
For the third quarter of 2025, KBW revised its adjusted EPS estimate to $0.01, down from a previous $0.10, aligning with the midpoint of Rocket’s guidance range of -$0.02 to +$0.03.
The research firm noted that while Rocket delivered solid second-quarter results, its second-half 2025 earnings are being negatively impacted by elevated transaction-related expenses, which are expected to disappear after the closing of the COOP transaction in the fourth quarter.
KBW increased its valuation multiple for Rocket to 15x from 13x, citing expectations that the multiple will trend upward following the completion of the COOP deal later this year. For deeper insights into RKT’s valuation and 12 additional ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Rocket Companies reported better-than-expected earnings for the second quarter of 2025. The company achieved earnings per share of $0.04, surpassing analysts’ expectations of $0.03. Additionally, Rocket Companies’ revenue reached $1.36 billion, exceeding the projected $1.28 billion. These results have drawn positive attention from investors. Furthermore, Citron Research has stated that Rocket Companies is not a meme stock, despite its significant share price increase this year. Citron described the company as building a substantial presence in the mortgage sector. In other developments, homebuilder and mortgage company stocks, including Rocket Companies, surged after weaker-than-expected jobs data, which influenced expectations for Federal Reserve interest rate cuts. The stock saw a notable rise of 16% following this news.
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