Rocket Companies' (RKT) Redfin and Mr. Cooper acquisitions have created a robust top of funnel to capture and monetize the life-cycle of real estate, Oppenheimer said in a Thursday research note.

The company presents the "best way to invest in residential real estate" as mortgage rates decline, driving refinance demand, according to the note.

Redfin's home search and real estate agent network, combined with Rocket's origination and servicing, creates a "natural" end-to-end customer experience. The acquisition of Mr. Cooper enables Rocket to drive its "strong" recapture through the combined $1.3 trillion servicing portfolio, the brokerage stated.

Rocket leveraging artificial intelligence results in measurable savings annually, expected to result in share gains and profitability. "We are forecasting $3.5 billion of EBITDA in 2026," analysts wrote.

The brokerage said it initiated coverage of the stock with an outperform rating and a price target of $25 per share.

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