UBS Maintains Neutral Rating for Rocket Companies, Raises PT to $16

UBS Maintains Neutral Rating for Rocket Companies, Raises PT to $16

UBS Group has maintained its neutral rating for Rocket Companies (NYSE: RKT) while raising its price target to $16. The financial services firm's latest report, dated July 2, 2025, reflects a cautious yet optimistic outlook on the fintech holding company's prospects.

In the report, UBS analysts highlighted Rocket Companies' strong second-quarter earnings and positive third-quarter guidance. The company's robust performance was further bolstered by a resurgence in the starter home segment of the housing market, which has ignited growth in the mortgage sector.

The analysts noted that Rocket Companies' strategic merger with Mr. Cooper has positioned the company as a potential "housing juggernaut," with the potential to multiply its business tenfold using AI without increasing headcount or costs. This synergy-rich merger was described as transformative by investor Dan Loeb.

Rocket Companies' CEO, Varun Krishna, has stated that the company stands to benefit regardless of interest rate movements. If rates fall, it "rockets," while in a high-rate environment, the company "services 1 in 6 U.S. mortgages." This diversification in revenue streams adds to the company's resilience.

The consensus rating for Rocket Companies remains mixed, with twelve brokerages giving a "Reduce" rating, two analysts rating it as a sell, nine as hold, and one as buy. The average 1-year target price among brokers is $14.5417, reflecting a range of opinions on the company's future prospects.

Despite the mixed analyst ratings, Rocket Companies' stock price has been volatile, with a 52-week low of $10.06 and a 52-week high of $21.38. The company's market cap stands at $33.84 billion, with a price-to-earnings ratio of -338.40 and a beta of 2.28.

Institutional investors have shown interest in Rocket Companies, with several hedge funds and asset management firms increasing their stakes in the company. This includes Boston Partners, Vanguard Group Inc., Nuveen Asset Management LLC, and Wellington Management Group LLP, among others.

The report by UBS Group underscores the potential of Rocket Companies in the mortgage lending sector, while acknowledging the risks and uncertainties associated with the company's future performance. Investors should carefully consider the latest developments and maintain a diversified investment portfolio.

References:
1. [Investing.com](https://www.investing.com/news/stock-market-news/citron-research-says-rocket-companies-isnt-a-meme-stock-93CH-4167669)
2. [MarketBeat](https://www.marketbeat.com/instant-alerts/rocket-companies-inc-nyserkt-given-consensus-rating-of-reduce-by-analysts-2025-08-05/)
3. [Markets](https://markets.financialcontent.com/stocks/article/marketminute-2025-8-4-rocket-companies-soars-as-starter-home-market-ignites-mortgage-sector)