Rocket Companies (NYSE:RKT) is in the news Friday after an upgrade sent RKT stock higher.
The upgrade to Rocket Companies stock comes from Susquehanna analyst Jack Micenko. The analyst bumps the stock up to a neutral rating from the previous negative rating that the firm had for RKT stock.
While Micenko is upgrading the stock to neutral, he isn’t increasing his price target for RKT stock. That’s still sitting at $20 per share. For comparison, the stock closed out trading on Friday at $20.04 per share.
So what has the Susquehanna analyst changing his stance on Rocket Companies? In a note sent out to investors, Micenko stated that the loan company’s risk and reward ratio is now even. His change in tune her comes as RKT stock has seen a significant dropoff since the start of September.
Also included in his note is an update on refinancing volumes. Micenko expects the fall on these to be pushed back by a quarter of more. However, he notes that this fall is still definitely coming, reports TheFly.
Rocket Companies is still new to public trading. The company only just held its initial public offering (IPO) in August. That IPO saw the company selling 100 million shares of RKT stock for $18 per share. It also reported its first earnings as a public company earlier this month. That saw its revenue beating out estimates.
RKT stock was up 2.4% as of Friday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.