Rocket Companies lands Buy rating from BTIG in new coverage; stock gains

[House Symbol Sitting over A Bar Graph - Stock Market and Real Estate Concept]
MicroStockHub/E+ via Getty Images

BTIG recently initiated coverage on retail mortgage lender Rocket Companies (NYSE:RKT [https://seekingalpha.com/symbol/RKT]) stock with a Buy rating as analyst Eric Hagen expects lower interest rates could drive earnings upside over the near term.

"We focus on the near-term opportunity mainly including the potential earnings upside from lower interest rates, although our rating and price target are driven more by the longer-term strategic vision, which leverages the company's leadership position as a software developer to deliver the most comprehensive end-to-end borrower experience for securing a mortgage loan," Hagen wrote in a note.

The analyst also lauded Rocket's (NYSE:RKT [https://seekingalpha.com/symbol/RKT]) pending acquisition [https://seekingalpha.com/news/4426812-rocket-cos-to-buy-mr-cooper-in-9_4b-all-stock-deal] of Mr. Cooper (COOP [https://seekingalpha.com/symbol/COOP]), a deal he noted may lead to improvements in earnings and valuation upon closing. Rocket is estimated to extract $250M of merger synergies through next year.

RKT shares advanced 1.6% in Tuesday late morning trading.

BTIG's But rating agrees with the average SA analyst [https://seekingalpha.com/symbol/RKT/ratings/author-ratings] rating of Buy, and diverges from the SA Quant [https://seekingalpha.com/symbol/RKT/ratings/quant-ratings] system rating and the average Wall Street analyst [https://seekingalpha.com/symbol/RKT/ratings/sell-side-ratings] rating, both at Hold.

Meanwhile, in a separate note, Hagen started coverage on Rocket (NYSE:RKT [https://seekingalpha.com/symbol/RKT]) rival loanDepot (LDI [https://seekingalpha.com/symbol/LDI]) at Neutral, citing strong brand recognition that could bolster lead generation, but warning its weaker liquidity access and cost-cutting flexibility may leave it less competitive.

MORE ON ROCKET COMPANIES

* Excerpt: Rocket And Mr. Cooper - A Transformative, Synergy-Rich Merger [https://seekingalpha.com/article/4808415-rocket-and-mr-cooper-a-transformative-synergy-rich-merger]
* Rocket Companies, Inc. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4807202-rocket-companies-inc-2025-q2-results-earnings-call-presentation]
* Rocket Companies, Inc. (RKT) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4807201-rocket-companies-inc-rkt-q2-2025-earnings-call-transcript]
* Kellanova/Mars, Mr. Cooper/Rocket Cos. among good bets for deal closes [https://seekingalpha.com/news/4484086-kellanovamars-mr-cooperrocket-cos-among-good-bets-for-deal-closes]
* Morgan Stanley resumes coverage of Rocket Companies with cautious view [https://seekingalpha.com/news/4485444-morgan-stanley-resumes-coverage-of-rocket-companies-with-cautious-view]