Investing.com - JPMorgan has reinstated coverage on Rocket Companies Inc. (NYSE:RKT) with a Neutral rating and a $24.00 price target following a period of restriction. The target sits just above RKT’s current price of $23.29, with the stock trading near its 52-week high of $23.41 according to InvestingPro data.
The financial services firm cited Rocket’s recent acquisitions and expanded strategy as key factors in its analysis, particularly focusing on the company’s purchases of Redfin and Mr. Cooper.
JPMorgan believes these acquisitions add important new revenue streams to Rocket’s mortgage origination platform, diversifying the company’s business model.
The firm noted that while the Mr. Cooper acquisition represents a significant near-term increase in refinancing opportunities, the impact of the Redfin acquisition on Rocket’s purchase mortgage volumes and profitability may take longer to materialize.
JPMorgan’s analysis included a comprehensive review of Rocket Companies’ history, a primer on mortgage lending, and detailed assessment of how the recent acquisitions fit into the company’s overall strategy.
In other recent news, Rocket Companies reported an extension to its Amended and Restated Master Repurchase Agreement with Bank of America. This extension pushes the expiration date to December 17, 2027, and following this amendment, Rocket Companies’ total funding capacity stood at $25.9 billion as of December 19. In a related development, Jefferies initiated coverage of Rocket Companies with a Buy rating, highlighting its strong position in the mortgage market. The firm set a price target of $25.00, emphasizing Rocket’s comprehensive approach to the homebuying process.
Additionally, U.S. home prices saw a 2.6% increase year over year in November, marking the slowest growth rate in a decade, as reported by Redfin. This comes amid a 2.1% drop in U.S. pending home sales, the largest decline in eight months. Meanwhile, mortgage rates have risen to 6.23% for the week ending November 26, still lower than the previous year’s 6.84%. These developments follow President-elect Trump’s announcement of a $200 billion mortgage bond purchase plan, which led to a surge in mortgage-related stocks, including Rocket Companies
www.investing.com/news/analyst-ratings/...target-93CH-4440882
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