Rocket Companies Lands Multiple Upgrades As Analysts See Boost From $9B Acquisition, Retail’s Bullish

Deutsche Bank expects the deal to provide a 38% EPS accretion to Rocket's 2027 results.

Rocket Companies (RKT) stock was in focus on Wednesday after several brokerages upgraded it following its $9.4 billion deal for Mr. Cooper Group.

On Monday, the mortgage firm agreed to buy Mr. Cooper in an all stock deal to gain nearly seven million additional clients and 150 million annual customer interactions.

Under the deal terms, Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock.

According to The Fly, Keefe Bruyette upgraded the stock to ‘Market Perform’ from ‘Underperform’ and set a price target of $14, up from $12.

The brokerage feels the deal creates a more balanced business model, giving it more confidence in its earnings estimates.

Keefe Bruyette also wrote that Rocket's 2027 market share goals appear more attainable after considering that the deal quadruples Rocket's servicing unpaid principal balance to approximately $2.15 trillion and positions the company to utilize its recapture capabilities in any declining rate environment.

Deutsche Bank upgraded the stock to ‘Buy’ from ‘Hold’ and raised the price target to $16 from $12.

The brokerage expects the deal to provide 38% earnings per share accretion to Rocket's 2027 results, as per The Fly.

Retail sentiment on Stocktwits remained in the ‘bullish’ (59/100) territory, while retail chatter rose to ‘high.’

Retail traders were bullish about the upgrades, with one expecting the stock to hit $13 soon.

Rocket Companies shares have gained 17.5% year-to-date (YTD).

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