Fannie Mae assumed with Outperform from Underperform at Wedbush

Wedbush double upgraded Fannie Mae (FNMA) to Outperform from Underperform with a price target of $11.50, up from $1, after assuming coverage of the name. The Trump administration is putting Fannie Mae on a path to leave conservatorship and to monetize Treasury’s investments, the analyst tells investors in a research note. The firm believes action could come int the near-term given that Bill Pulte said recently that the administration plans on selling 5% of the stock associated with Treasury’s options on 79.9% of Fannie’s stock by the end of this year or early next year without taking it out of conservatorship. Wedbush estimates nearly 50% probability of upside for the shares.