Morgan Stanley analyst Jeffrey Adelson maintained a Hold rating on Rocket Companies today and set a price target of $18.00.
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Jeffrey Adelson has given his Hold rating due to a combination of factors that reflect both positive developments and certain challenges for Rocket Companies. The company has shown strong origination volumes and successful integration with Redfin, which has led to market share gains and improved mortgage attach rates. These positive indicators suggest that Rocket Companies is on track to meet its strategic goals, with Redfin already contributing significantly to its direct-to-consumer purchase origination volumes.
However, despite these advancements, there are concerns that temper the overall outlook. The 4Q revenue guidance, although higher than consensus at the midpoint, does not fully account for the COOP integration, and there is a notable reduction in expected EPS for the quarter. Additionally, while there is momentum in refinancing and application volumes, the financial results versus consensus and the direction for the next 12 months suggest a modest upside. These mixed factors contribute to the Hold rating, indicating a cautious but optimistic view of Rocket Companies’ future performance.
In another report released today, Barclays also maintained a Hold rating on the stock with a $19.00 price target.