Rocket analysts mixed on mortgage lender’s trajectory
Rocket shares recently traded at $ 29.47, up 3.73%. They had climbed 32% through Friday since the Detroit-based company went public earlier this month, amid strong demand for housing and refinancing during the coronavirus pandemic.
RBC analyst Daniel Perlin has a higher yield rating and a target price of $ 32 for the stock.
“Rocket’s proprietary, technology-driven approach will allow it to continue to profitably gain stakes in refinanced loans and new purchase loans in the large and fragmented US mortgage market, where there are short-term catalysts. related to rates and demographics, ”he wrote in a quoted comment. by Bloomberg.
Bank of America analyst Jason Kupferberg has a buy rating on the stock, also with a price target of $ 32. It has “room for more,” given its status as the largest mortgage originator in the United States and the growth in mortgage origination, he said, according to Bloomberg.
Morgan Stanley analyst James Faucette has an equal weight rating with a target of $ 25 for stocks. Rocket’s valuation already reflects its growing market share, he said, according to Bloomberg.
Goldman Sachs analyst Ryan Nash has a neutral rating and a target of $ 27 for the stock.
“The valuation appears fair at current levels,” Nash wrote, according to Bloomberg.
Meanwhile, UBS began hedging Rocket with a neutral rating and a price target of $ 28.
Credit Suisse started hedging Rocket with a neutral rating. His target price is $ 29.
Earlier this month, Rocket released a preliminary second quarter report, saying he expected net income of $ 3.5 billion, compared to a loss of $ 54 million during the period. the previous year.