Mortgage finance stocks like Fannie Mae are gaining attention with a potential Trump Administration move towards recapitalization and partial stock sales. Wedbush has upgraded FNMA with a price target increase of 1,050%, sparking investor interest in the stock’s speculative opportunities.

Fannie Mae, a GSE based in Washington, D.C., plays a crucial role in the U.S. mortgage market by providing liquidity and stability. With a market cap of $11 billion, FNMA’s shares have surged by 190% YTD, driven by hopes of privatization or monetization.

Despite the buzz, FNMA’s valuation appears undervalued with a low price-to-sales ratio of 1.90 compared to the sector median of 3.02. Analysts speculate potential government actions, like selling Treasury’s stock options on Fannie, could unlock significant value, but political and regulatory hurdles remain.

Fannie Mae’s recent third-quarter report showed steady profits, with revenue around $7.31 billion and net income of $3.9 billion. Analysts expect 2025 revenue to range between $29 to $30 billion, showcasing solid earnings potential for a company managing trillions in mortgages.

Wall Street analysts maintain a cautious “Hold” rating on FNMA stock, with a mean price target of $13.33 suggesting a 40% upside potential. The stock’s performance hinges on political catalysts, making it a risky bet dependent on government policy changes in the housing finance sector.

Read more at Yahoo Finance: Wedbush Just Raised Its Fannie Mae Price Target 1,050%. Should You Buy FNMA Stock Here?