Acquisition SynergiesThe closing of the Mr. Cooper acquisition is another potential near-term catalyst for the stock, with synergies expected to provide upside opportunities.
Market Share And Rate CutsThe analyst sees Rocket as a strong beneficiary of rate cuts as it will likely spur an increase in both purchase and refi volumes, with a more pronounced effect on refi where RKT has a sizeable market share.
Strategic Fit And Structural AdvantagesThe COOP acquisition is viewed as a strong strategic fit, leveraging organic origination to grow the servicing portfolio and recapture runoff, potentially providing long-term structural advantages over competitors.