Barclays upgrades Rocket, First American to 'overweight' following pullback

Rocket Companies

06/04/2026 11:57

** Barclays upgrades mortgage company Rocket Companies RKT.N and title insurer First American Financial FAF.N to "overweight" from "equal weight" following recent valuation reset

** RKT climbs 3.7% premarket, while FAF is up 1.2%

** Brokerage says RKT has a more balanced business mix following the acquisition of home loan service provider Mr Cooper Group, which should help it deliver more stable results through the interest rate cycle

** Adds that the overall earnings outlook is more stable than the recent share price pullback suggests

** Similar to RKT, Barclays sees FAF's valuation as overly discounted and a compelling early entry point for investors who have remained on the sidelines

** "Commercial activity has been a bright spot for the title industry and we expect that to continue" - Barclays analyst Terry Ma

** As of last close, RKT down 22.7%, FAF down 5.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))