Rocket Companies initiated with a Market Perform at Citizens

Citizens initiated coverage of Rocket Companies (RKT) with a Market Perform rating and no price target The shares warrant a premium valuation as the company is the “clear leader” in the residential mortgage space, the analyst tells investors in a research note. However, Citizens is looking to the next few quarters for Rocket to execute on its revenue and expense synergy targets with respect to the Mr. Cooper deal and begin to grow earnings in a “consistent and meaningful way.”