Rocket Companies price target lowered to $18 from $20 at RBC Capital

RBC Capital analyst Daniel Perlin lowered the firm’s price target on Rocket Companies (RKT) to $18 from $20 and keeps a Sector Perform rating on the shares. The company’s Q3 results exceeded expectations for both adjusted revenue and EBITDA, as the company’s origination volume increased 28% y/y in a very volatile environment for originations, though the firm is cutting its price target as it reduces its adjusted forward EBITDA multiple to 6.5-times from 7.5-times – a level in line with similar cyclical growth peers, the analyst tells investors in a research note.