Investors Are Counting on a Big Rally in Fannie Mae Stock. Why This Analyst Warns One May Not Be Coming.

Core Viewpoint - Fannie Mae is gaining attention on Wall Street due to optimism surrounding potential privatization and an IPO as the Trump administration considers releasing it from federal conservatorship [1][2] Company Overview - Fannie Mae, formally known as the Federal National Mortgage Association, has been integral to the U.S. housing market for nearly 90 years, facilitating homeownership by purchasing mortgages and converting them into mortgage-backed securities [4] - The company has injected $178 billion in liquidity into the housing market, aiding over 668,000 households in the first half of 2025, and holds $4.3 trillion in assets, making it a cornerstone of the U.S. housing finance system [5] Market Performance - Fannie Mae has a market capitalization of approximately $15.1 billion, and its shares have seen a remarkable increase, delivering a 953% return over the past year and climbing another 298% this year alone [6]