Why Rocket Companies Stock Popped Today
Shares of Rocket Companies (NYSE: RKT) jumped 4.5% on Wednesday, following positive analyst commentary.
Wells Fargo analyst Donald Fandetti raised his rating on Rocket's stock from equal weight to overweight. He now sees the mortgage titan's share price climbing to $10, up from a previous forecast of $6.50. If he's right, shareholders could enjoy gains of roughly 19% from the stock's closing price on Wednesday.
Fandetti acknowledged that the residential mortgage industry was dealing with serious challenges. Most notably, the Federal Reserve's moves to raise interest rates in hopes of taming inflation are taking a heavy toll on the housing market. Sharply higher mortgage rates are making it significantly more expensive to purchase homes. They're also denting demand for refinancings.
Source Fool.com
