Lutnick comments suggest ‘sooner rather than later’ Fannie Mae IPO, says Wedbush

Commerce Secretary Howard Lutnick on Wednesday commented on CNBC that the Trump administration is “well down the road” to getting an IPO of Fannie Mae (FNMA) done and would like to see “something done” by 1Q26, Wedbush tells investors in a research note. The firm is not surprised by Lutnick’s comments, but says there is no information on the administration’s specific plans for how it will ultimately treat the Treasury’s senior preferred equity interest in Fannie Mae, how it will release the government sponsored entity from conservatorship, and whether it will be focused on selling some of the Treasury’s interest or raising the capital needed to meet the FHFA’s capital targets. Wedbush has an Outperform rating and $11.50 price target on Fannie Mae shares.