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FMCC
Barrons
4 hrs

Fannie Mae, Freddie Mac Continue to Rally. They’re ‘Not for the Risk-Averse,’ This Analyst Says.

1. Deutsche Bank forecasts upside for FMCC, suggesting price targets of $20 and $25. 2. Shares have surged over 300% this year amid hopes of conservatorship resolution. 3. Potential dilution risks may impact the value of FMCC shares significantly. 4. Government's decisions on asset sales and capital requirements remain unresolved. 5. DeVries cautions that common shareholders face risks if recapitalization leads to dilution.

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FAQ

Why Bullish?

The bullish outlook is supported by significant upside targets despite potential dilution concerns. Historically, similar scenarios of recapitalization have led to stock price increases, but risks are present.

How important is it?

The article provides key insights on FMCC's future value and potential risks, which are significant for investors. The analysis by Deutsche Bank is credible and impactful for FMCC's stock.

Why Short Term?

Recent price activity and investor sentiment indicate short-term impacts. However, long-term effects depend heavily on government actions regarding conservatorship.

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