Fannie Mae initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of Fannie Mae (FNMA) with a Buy rating and $20 price target The stock still offers attractive upside despite rallying 300% year-to-date as the government sponsored entity nears a likely recapitalization and release, the analyst tells investors in a research note. However, the firm believes both Fannie and Freddie have “meaningful downside” if the recapitalization process brings greater than expected dilution. The Trump administration seems poised to initiate a recapitalization process that should ultimately free it up to release the GSEs from conservatorship, Deutsche contends.