Fannie Mae upgraded to Market Perform from Underperform at Keefe Bruyette

Keefe Bruyette upgraded Fannie Mae to Market Perform from Underperform with a $1.25 price target. The shares are likely to outperform in 2024 if it looks like there could be a close presidential election, and shares could increase meaningfully in the event Donald Trump wins the election, the analyst tells investors in a research note. While the firm believes the challenging logistics associated with privatizing the government sponsored entities make the likelihood of privatization relatively low, Keefe says history suggests that the market believes a Trump administration could potentially accomplish privatization. It points out that since Donald Trump’s victory in the Iowa Republican caucus on Monday night, shares of Fannie Mae are up 13% and shares of Freddie Mac are up 10.5%.