- Fannie Mae (OTCQB:FNMA) gains 4.9% and Freddie Mac (OTCQB:FMCC) rises 3.7% after Nomura Instinet analyst Matthew Howlett initiates coverage of the two government-sponsored enterprises with Buy ratings.
- Expects "recap and release" of the GSEs in the next 12-18 months.
- Has $5 price target for Fannie and $4.50 target for Freddie.
- Quant ratings for both Fannie and Freddie are Neutral.