JPMorgan Downgrades Rocket Cos Inc. (RKT) to Underweight

(Updated - January 19, 2021 6:27 AM EST)

JPMorgan analyst Richard Shane downgraded Rocket Cos Inc. (NYSE: RKT) from Overweight to Underweight with a price target of $20.00 (from $26.00).

The analyst comments "Fundamental headwinds have increased following rapid steepening of yield curve. Volumes will likely remain elevated in 1H21 as borrowers try to lock in low rates, but GoS margins will begin to compress tracking the primary/secondary spread. As we move through cycle, competition likely to intensify, increasing pressure on GoS and market share. Relatively high multiple, combined with sharp decline in ‘21 EPS (and possibility of further declines in ‘22) limit multiple expansion NTM. Downside risk if earnings outlook starts to erode."

For an analyst ratings summary and ratings history on Rocket Cos Inc. click here. For more ratings news on Rocket Cos Inc. click here.

Shares of Rocket Cos Inc. closed at $19.45 yesterday.

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