Analyst Matthew Hurwit from Jefferies maintained a Buy rating on Rocket Companies and keeping the price target at $25.00.
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Matthew Hurwit has given his Buy rating due to a combination of factors tied to the recent decline in mortgage rates and the policy backdrop. He highlights that the 22-basis-point drop in 30-year mortgage rates to just under 6% is likely to stimulate refinancing activity, historically linked to double‑digit percentage increases in refi volumes. Since refinancing currently makes up a meaningful portion of the mortgage market, this uplift in activity should translate into higher overall mortgage originations, directly benefiting Rocket Companies’ earnings power. He notes that consensus forecasts had already assumed lower rates and a rebound in refinancing over the next two years, but the announced $200 billion GSE MBS purchase program effectively pulls some of that upside forward and increases the probability of a more supportive housing-policy environment.
Hurwit estimates that if refinancing volumes run about 20% above his prior base case due to this program, Rocket Companies could see an illustrative mid‑single‑digit percentage boost to its 2026 earnings per share. In absolute terms, he models an incremental EPS contribution that is financially meaningful, while also acknowledging sensitivities to conversion rates, pricing, and costs. He interprets the sharp positive stock reaction in Rocket Companies as the market starting to discount not just the one‑time impact of lower rates, but the possibility of a sustained or broader housing support regime. Taken together, the accelerated recovery in refi demand, the policy tailwind, and the associated upside to Rocket’s earnings trajectory underpin his Buy rating.
Hurwit covers the Financial sector, focusing on stocks such as Rocket Companies, Walker & Dunlop, and PennyMac Financial. According to TipRanks, Hurwit has an average return of 0.1% and a 60.00% success rate on recommended stocks.
In another report released on January 2, BTIG also maintained a Buy rating on the stock with a $25.00 price target.