Rocket Companies initiated with a Buy at BTIG

BTIG initiated coverage of Rocket Companies (RKT) with a Buy rating and $25 price target as part of a broader research note launching coverage of Residential Mortgage Finance. The growth and evolution of the industry feeds into the firm’s current thesis, which focuses on the franchise value connected to the growth opportunity for the channel leaders whose financial and operational scale support being most competitive and which may be already getting reflected in the lower cost of capital and enhanced risk management connected to more developed capital structures, the analyst tells investors in a research note.