Rocket downgraded to Underperform from Market Perform at Keefe Bruyette

Keefe Bruyette downgraded Rocket Companies (RKT) to Underperform from Market Perform with a price target of $11.50, down from $16. The firm says the current rate backdrop suggests that a more meaningful recovery in the purchase market is likely to get pushed out past 2025. Given the higher rate expectations, Keefe are most positive on the mortgage insurers going into 2025. The firm believes the outlook suggests a challenging backdrop for mortgage originators with a high concentration in the refinance market, like Rocket.