Wells Fargo Cuts Rocket Cos Price Target to $13 on Yields

Wells Fargo lowered its price target on Rocket Companies to $13.00 from $15.00, citing a smaller addressable mortgage market and sustained headwinds from elevated 10-year Treasury yields. The Wall Street firm maintained its Equal Weight rating on the stock while broader housing finance conditions remain constrained by higher borrowing costs.

Along with the target reduction, analysts adjusted near-term financial projections downwards to account for slower origination volumes across the sector. According to an Investing.com report, the bank reduced its third-quarter revenue estimate for Rocket to $2.59 billion from $2.63 billion.

Earnings Revisions for 2026 and 2027

The downward adjustments extend into future fiscal periods, reflecting a conservative outlook for profitability as mortgage rates linger above historical averages.

• Q3 Revenue Estimate: Reduced to $2.59 billion, sitting below the broader analyst consensus of $2.64 billion.
• 2026 EPS Estimate: Lowered by 1 cent to $0.61 per share.
• 2027 EPS Estimate: Cut by 15 cents to $0.80 per share, trailing the market consensus of $0.85.

Treasury Yields and the Mortgage Market

Elevated 10-year Treasury yields directly influence consumer mortgage rates, which dictate origination volumes and refinancing activity for non-bank lenders like Rocket Companies. When benchmark yields climb, affordability worsens for prospective homebuyers, narrowing the market pool for purchase loans and subduing profitable refinancing activity.

In public market trading, shares of Wells Fargo & Co (WFC) quoted at $83.55, marking an increase of 1.85% as of 2026-10-09T20:00:00.000Z, according to Finnhub market data.