Rocket Companies rises after BofA upgrades to 'buy' on rate-cut tailwinds

Brokerage BofA Global Research upgrades mortgage lender Rocket Companies RKT.N to "buy" from "neutral" and raises PT to $24 from $21

Shares of RKT rise 5.9% to $21.67

New PT represents a 17.2% upside to the stock's last close

"We see Rocket as a strong beneficiary of rate cuts as it will likely spur an increase in both purchase and refi (refinancing) volumes," BofA says

Brokerage sees the close of the Mr Cooper COOP.O acquisition as a positive near-term catalyst

"Current mortgage rates at 6.55% are at the lowest level since Feb 2023 and we think RKT would see an even more meaningful uplift to volumes as mortgage rates drift lower"- BofA

Including session's move, RKT stock was up 105.6% YTD