BTIG analyst Jake Fuller says Rocket Companies’ (RKT) takeover of Redfin (RDFN) relies on the ability to cross-sell financial products to home buyers to justify “what on the surface” is an “aggressive price.” The deal values Redfin at $12.50 per share, putting it above the $3-$12 fair value range BTIG has articulated based on a range of underlying housing market assumptions, the analyst tells investors in a research note. The firm notes Rocket has identified $200M of synergies, including $60M on the revenue side, which would bring the purchase multiple down to a “more amenable” 9-times 2026 EBITDA estimates. BTIG has a Neutral rating on Redfin.
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