Can Freddie Mac Stock Hit $25 in 2025?

Core Viewpoint - Freddie Mac is experiencing significant market performance, with potential privatization considerations from the Trump administration driving optimism in its stock value [1][2][7]. Company Overview - Freddie Mac, a government-sponsored enterprise based in McLean, Virginia, was established in 1970 and plays a crucial role in the U.S. housing finance system by purchasing home loans and converting them into mortgage-backed securities [4][5]. - The organization supports both single-family and multi-family housing sectors, collaborating with financial institutions to maintain market liquidity [5][6]. Financial Performance - Freddie Mac has a market capitalization of $8.7 billion and is currently viewed as relatively undervalued, with a price-to-sales ratio of 0.07, significantly lower than the industry average [5][8]. - Over the past 52 weeks, Freddie Mac's stock has surged by 947%, reaching a 52-week high of $14.99 on September 12, although it has since declined by 13% from that peak. Year-to-date, the stock has increased by 297% [7]. Market Sentiment - Deutsche Bank has initiated coverage on Freddie Mac with a "Buy" rating and a price target of $25, indicating that the business is now considered de-risked and generating returns [3].