UBS has revised its price target for Rocket Companies (RKT, Financial), reducing it from $14 to $13. Despite this adjustment, the firm maintains a Neutral stance on the stock as it evaluates the company's performance in the context of the first quarter mortgage banking environment.
In its latest analysis, UBS highlights that servicing earnings appeared more favorable compared to originations during the first quarter. This trend was largely influenced by seasonal factors that impacted overall volume performance during the period.
While UBS suggests there may be some risk to the first-quarter funded volume projections, they note that a late-quarter uptick in refinance volume could potentially enhance lock volume. This increase is likely to mitigate any adverse impact on the firm's estimates, partially offsetting the downside risk associated with the original forecasts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Rocket Companies Inc (RKT, Financial) is $14.55 with a high estimate of $18.00 and a low estimate of $11.50. The average target implies an upside of 16.40% from the current price of $12.50. More detailed estimate data can be found on the Rocket Companies Inc (RKT) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Rocket Companies Inc's (RKT, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rocket Companies Inc (RKT, Financial) in one year is $85.05, suggesting a upside of 580.4% from the current price of $12.5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rocket Companies Inc (RKT) Summary page.
