BofA sees Redfin deal as continuation of Rocket’s ‘move up the funnel’ strategy

Commenting on Rocket Companies’ (RKT) announcement that it had entered a definitive agreement to acquire Redfin (RDFN) for $1.75B, BofA analyst Mihir Bhatia says the firm views the deal as a continuation of Rocket’s strategy to move “up the funnel.” The combined entity will provide customers with a seamless search to close experience and Rocket believes this acquisition will help to drive purchase mortgage growth, BofA adds. The firm maintains a Neutral rating on Rocket with a price target of $15.