Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - BTIG initiated coverage on Rocket Cos Inc. (NYSE:RKT) with a Buy rating and a $25.00 price target on Monday. According to InvestingPro data, the stock has shown significant momentum, delivering a 48.8% return over the past six months and currently trades near its 52-week high of $21.38.
The research firm highlighted Rocket’s position as the nation’s largest retail mortgage lender, noting its digital experience across loan origination, servicing, and adjacent consumer finance products.
BTIG pointed to Rocket’s significant market presence, with trailing 12-month origination volume of $107 billion and a current servicing portfolio of $538 billion UPB (unpaid principal balance).
The firm’s bullish outlook stems from both near-term earnings potential from lower interest rates and a longer-term strategic vision that leverages Rocket’s leadership in software development.
BTIG emphasized that Rocket’s franchise value is connected to growth opportunities for channel leaders whose financial and operational scale supports competitiveness regardless of interest rate environments, justifying a premium stock valuation.
In other recent news, Rocket Companies has seen several noteworthy developments. Keefe, Bruyette & Woods raised its price target for Rocket Companies to $15.00 from $14.00, maintaining a Market Perform rating. This adjustment follows Rocket’s third-quarter guidance and revised expectations from the Mortgage Bankers Association. Meanwhile, Morgan Stanley (NYSE:MS) resumed coverage of Rocket Companies with an Equalweight rating, citing a less compelling risk-reward profile after a significant rally in shares. Additionally, Rocket Companies has appointed Viral Nation as its social media agency of record to enhance its social media presence. In the broader real estate market, Freddie Mac (OTC:FMCC) reported that the 30-year fixed-rate mortgage averaged 6.58%, its lowest since October. Furthermore, the median asking rent in the United States increased by 1.7% year-over-year in July, according to Redfin (NASDAQ:RDFN). These developments reflect ongoing shifts in the real estate and mortgage sectors.
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