Intel stock extends gains after report of possible U.S. government stake
Investing.com - Keefe, Bruyette & Woods raised its price target on Rocket Cos Inc. (NYSE:RKT) to $14.00 from $13.00 while maintaining a Market Perform rating.
The price target increase follows Rocket’s completion of its acquisition of Redfin (NASDAQ:RDFN) Corp on July 1. The all-stock transaction valued Redfin at approximately $1.75 billion.
KBW noted that Rocket expects the Redfin acquisition to be accretive to adjusted earnings per share by the end of 2026. The firm’s new price target represents a 13x price-to-earnings multiple on its 2027 EPS estimate.
The research firm continues to expect Rocket’s pending acquisition of COOP to close by year-end 2025. This transaction is anticipated to significantly increase the company’s float.
KBW believes Rocket’s earnings multiple will likely trend upward as the COOP transaction closes, potentially attracting new investors to the stock.
In other recent news, Rocket Companies has completed its acquisition of Redfin, integrating the real estate brokerage into its operations. As part of this merger, the company introduced "Rocket Preferred Pricing," offering benefits to homebuyers who use both Rocket and Redfin’s services. Additionally, Rocket Companies has announced a $4 billion private offering of senior notes, split between two series due in 2030 and 2033. The proceeds from this offering are intended for various financial purposes, including debt repayment and redemption of existing notes.
Furthermore, Rocket Companies reported a change in its board composition, as Nancy Tellem, a Class II director, will not seek re-election, reducing the board from nine to eight members. In a separate development, Citron Research has endorsed Rocket Companies, describing it as a "sleeping juggernaut" with significant potential in the real estate sector. Citron highlighted Rocket’s strategic use of artificial intelligence and data analytics as key strengths. These developments reflect Rocket Companies’ ongoing efforts to expand its market presence and enhance its financial strategies.
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