Deutsche Bank initiated coverage of Freddie Mac (FMCC) with a Buy rating and $25 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.
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