Core Insights - Fannie Mae has emerged as a speculative opportunity in the market due to potential government actions that could unlock significant value [2][5] - Wedbush has upgraded Fannie Mae's stock with a remarkable price target increase from $1 to $11.50, citing possible recapitalization and stock sales by the Trump Administration [2] - The stock has seen a substantial year-to-date increase of approximately 190%, contrasting with the sector median decline of 6% [5] Company Overview - Fannie Mae, based in Washington, D.C., is a government-sponsored enterprise aimed at enhancing liquidity and stability in the U.S. mortgage market [4] - The company operates a multitrillion-dollar guaranty book, supporting both single-family and multifamily loans [4] Market Performance - Fannie Mae's market capitalization is currently valued at $11 billion, and its stock has significantly outperformed the sector [5] - The price-to-sales ratio of Fannie Mae stands at 1.90, which is lower than the sector median of 3.02, indicating it is undervalued [6] Speculative Outlook - The bullish sentiment surrounding Fannie Mae is driven by regulatory uncertainty and potential government actions that could enhance its value [7] - Activist investor Bill Ackman suggests that instead of an IPO, directly listing Fannie Mae and Freddie Mac on the NYSE could lead to a combined valuation of $400 billion [7]