Rocket Companies Upgraded as Valuation Nears a 52-Week Low

Rocket Companies NYSE:RKT, the mortgage lender and fintech behind Rocket Mortgage, rose 1.03% premarket after Morgan Stanley upgraded the stock to Overweight from Equalweight and raised its price target to $19 from $18. The firm called the valuation unusually attractive after a long slide, noting Rocket has dropped nearly 40% from its 2026 peak, leaving it near its 52-week low of $12.17.

Morgan Stanley's 2028 EPS estimate sits nearly 10% above consensus, and the firm thinks the market has already priced in too much of the near-term hit from higher rates, even if 2026 and 2027 estimates may still need to come down. At roughly 13.5x earnings, Rocket trades well below its post-2023 average of about 17.5x.

JPMorgan trimmed its Rocket target to $15.50 from $16 days earlier while keeping a Hold, a reminder of how split the analyst view has become. The mortgage industry remains squeezed by elevated rates and affordability limits that have held down origination volumes. Rocket reports second-quarter results on July 30.