Bank of America Securities analyst Mihir Bhatia has reiterated their bullish stance on RKT stock, giving a Buy rating on April 6.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Mihir Bhatia has given his Buy rating due to a combination of factors related to both macro conditions and company-specific drivers. He notes that Rocket’s shares have sold off sharply amid Middle East tensions and higher mortgage rates, but he sees potential upside if the recently announced ceasefire is sustained and mortgage rates return to a downward trend, which would support origination volumes and overall earnings power.
He also points out that current expense levels reflect front-loaded marketing and brand investments, including the Super Bowl campaign and growth initiatives like Rocket Money and Redfin, which should pave the way for stronger revenue later in the year. In addition, he expects operating leverage to improve as Rocket applies AI to streamline mortgage processes and integrates operations with Mr. Cooper and Redfin, and he reiterates a $19 price objective based on an 18x multiple of his 2027 earnings forecast, supporting his continued Buy stance.
In another report released on April 6, Barclays also upgraded the stock to a Buy with a $19.00 price target.