Rocket Companies upgraded to Market Perform from Underperform at Keefe Bruyette

Keefe Bruyette upgraded Rocket Companies (RKT) to Market Perform from Underperform with a price target of $14, up from $12, following the announcement of the pending Mr. Cooper (COOP) acquisition. The firm believes the deal creates a more balanced business model and gives it more confidence in its earnings estimates. Further, Rocket’s 2027 market share goals appear more attainable considering the deal would roughly quadruple Rocket’s servicing unpaid principal balance to roughly $2.15T and position the company to utilize its recapture capabilities in any declining rate environment, the analyst tells investors in a research note.