
RKT Stock Forecast & Price Target
RKT Analyst Ratings
Bulls say
Rocket Companies has demonstrated a solid financial performance, reflected in an 8% quarter-over-quarter increase in book value, reaching $4.56, alongside a significant servicing UPB growth of $593 billion, marking a 17% year-over-year rise. The company is strategically focused on expanding its share in the purchase market, with a 10% year-over-year increase in its internal purchase pipeline for 2025 and a modest growth in purchase share from 3.7% to 4.0%. Additionally, the implementation of AI-powered technology has notably improved operation efficiency, yielding approximately $40 million in gains while enhancing service capacity by 54% year-over-year in the fourth quarter.
Bears say
The financial analysis indicates a negative outlook on Rocket Companies due to seasonal weakness in mortgage originations, particularly noted in January 2025, which may impact overall demand and growth potential. Operating expenses were lower than forecasted at $968 million for F4Q24, but this does not sufficiently offset concerns regarding static gross margins and a subdued earnings growth forecast with EPS estimates for 2025, 2026, and 2027 now standing at $0.40, $0.81, and $1.20, respectively. Additionally, the risk/reward profile appears unfavorable, with potential downside risk of -14% to the base case and a projected -30% additional downside in a pessimistic scenario, suggesting limited upside potential compared to significant risks.
This aggregate rating is based on analysts' research of Rocket Companies, Inc. and is not a guaranteed prediction by Public.com or investment advice.
RKT Analyst Forecast & Price Prediction
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