Fannie Mae price target raised to $10 from $4 at Keefe Bruyette

Keefe Bruyette raised the firm’s price target on Fannie Mae (FNMA) to $10 from $4 and keeps an Underperform rating on the shares. The firm thinks an attempt to privatize the government sponsored entities appears likely to start in early 2026, “but hurdles still exist.” The likelihood of success has increased meaningfully over the past six months, with President Trump starting his goal is to take the companies public, and others in the administration echoing the remarks, the analyst tells investors in a research note. Keefe continues to think privatization will be done administratively, with Congress not playing a role. It reiterates Underperform ratings on both Fannie and Freddie, believing dilution risk for the common shares are meaningful in the event of a privatization.