BTIG Downgrades Rocket Companies to Neutral, Cuts Targets 30%
RKT•BTIG cut Rocket Companies’ price target by roughly 30% and downgraded its rating to Neutral, citing delayed earnings recovery under elevated rates. The firm maintained Buy ratings on Better Mortgage and PennyMac Financial while projecting U.S. mortgage originations of about $2.1 trillion in 2026 and 2027.
1. BTIG Downgrade and Target Reduction
BTIG downgraded Rocket Companies to a Neutral rating and cut its price target by approximately 30%, attributing the action to a more challenging interest-rate environment delaying a return to normalized earnings across the mortgage sector.
2. Mortgage Sector Outlook
The brokerage projects U.S. mortgage originations of about $2.1 trillion in both 2026 and 2027, noting resilient application volumes and estimating that a 50-basis-point rate decline could increase origination volumes by over 10%, highlighting potential upside if rates ease.
