Rocket (RKT) reported "strong" Q4 results, backed by an improving rate environment, effective integration of acquisitions, and a new Compass partnership, RBC Capital Markets said in a note Monday.

The analysts said pushback remains as direct-to-consumer gain on sale margins fell to 3.73% from 4.10% last year, and Q1 expenses rose, partly due to a $150 million reclassification, though revenue guidance remains strong.

"Our thesis on Rocket shares is that the company will continue to take share in the currently fragmented market by both underwriting new purchase loans and refinancing existing

ones," the analysts said.

The analysts said they are raising their full-year 2026 estimates to $11.38 billion in adjusted revenue, $4.15 billion in adjusted EBITDA, and $0.95 in adjusted EPS, up from previous estimates of $9.96 billion, $3.34 billion, and $0.70, respectively.

For FY27, the analysts are initiating estimates at $12.36 billion in adjusted revenue, $4.75 billion in adjusted EBITDA, and $1.04 in adjusted EPS, they added.

RBC has a sector perform rating and a price target of $20 on Rocket. Shares of the company fell past 4% in recent trading.

Price: 16.05, Change: -0.74, Percent Change: -4.41