Rocket’s acquisition of Redfin increases purchase market opportunity, says UBS

Rocket Companies’ (RKT) $1.75B stock acquisition of Redfin (RDFN) has the potential to increase the pace of market share gains for Rocket in purchase mortgage due to the increased funnel, UBS tells investors in a research note. The firm, which sees the long-term potential for the transaction, says the integration risk and timeline to accretion are likely to weigh on Rocket shares near-term. UBS has a Neutral rating and $14 price target on Rocket shares.