Fannie Mae initiated with a Buy at BTIG

BTIG analyst Eric Hagen initiated coverage of Fannie Mae (FNMA) with a Buy rating and $20 price target The firm considers the timing and motivation from the current Administration to potentially recapitalize the GSEs to be strongly aligned with the effort to drive lower mortgage rates and boost the homeownership rate, notes the analyst, who sees technology enhancements being central to that whole effort. The stock has nearly doubled over the past year since Trump took office, but the firm supports the argument that it could re-rate higher if Treasury’s Senior Preferred Stock is deemed repaid and it exercises the warrants for 79.9% of FNMA’s common stock, the analyst tells investors.