Rocket Companies Is Citron's 'Call of the Year,' Dubbed The 'Amazon Of Housing'

Core Viewpoint - Citron Research is bullish on Rocket Companies (RKT), describing it as a misunderstood stock with significant potential due to recent acquisitions and its innovative use of AI in the real estate sector [1][2][3]. Company Overview - Rocket Companies is recognized for its mortgage and personal finance businesses and is seen as a "sleeping juggernaut of real estate" with vertical integration [2]. - The company is leveraging AI and data to create a dominant real estate platform, which Citron believes will thrive even in a high-interest-rate environment [2][3]. AI and Technology - Citron highlights that Rocket's proprietary AI, referred to as "Rocket Logic," is becoming integral to its operations, likening it to a combination of Salesforce, Zillow, and TurboTax for mortgages [3]. - The use of AI is expected to modernize the housing finance sector, which is currently seen as outdated and inefficient [3]. Recent Acquisitions - The acquisition of Mr. Cooper is viewed as a strategic move that enhances Rocket's scale, reach, and margin expansion, creating a synergistic effect [3][4]. - Citron also notes that Rocket's acquisitions of Mr. Cooper and Redfin have contributed to its EBITDA growth and overall scale [4]. Financial Projections - Citron predicts that Rocket Companies could achieve $4 billion in annual EBITDA in the future, with a valuation based on a 15x EBITDA multiple leading to an enterprise value of $60 billion [4]. - This would imply a stock price of approximately $33.33 for Rocket Companies [4]. Market Position - Rocket Mortgage is projected to become the most dominant mortgage company globally within three years, capitalizing on the large and largely inefficient U.S. residential housing market [5]. - As of the latest trading data, Rocket Companies' stock has increased by 4.1% to $12.14, with a year-to-date increase of 12.1% in 2025, despite a decline of over 15% in the past year [5].