Fannie Mae-No Politics (FNMA)

[Barrario]

Freddie price target upped by Nomura on capital raise prospects [Suppressed Image] Jun. 4, 2020 9:52 AM ET|By: Liz Kiesche, SA News Editor -- Nomura Instinet analyst Matthew Howlett boosts his price target for Freddie Mac (OTCQB:FMCC -0.7%) to $5.00 from $4.50, noting he now expects the mortgage giant to raise $39B of capital around July 1, 2021. -- FMCC recently traded at $2.16. -- Reiterates Buy rating. -- Sees FMCC reaching ~$120B of capital by Q3 2024 and then become a dividend-paying company. -- For the July 2021 capital raise, Howlett expects Freddie to issue 2.2B shares of common stock at $5 each, 3.75B of 3.5% mandatory convertible preferred stock, and 70M of 5% non-cumulative preferred stock. -- The July 2021 capital raise may be followed by three additional preferred stock offerings — $9B in 2022, $10B in 2023, and $10B in 2024.