BTIG Starts Freddie Mac (FMCC) at Buy, PT $20

BTIG analyst Eric Hagen initiates coverage on Freddie Mac (OTC: FMCC) with a Buy rating and a price target of $20.00.

The analyst comments "We're initiating coverage of Freddie Mac (FMCC) with a Buy rating and a $20 price target... We build on our companion initiation note for Fannie Mae (FNMA, Buy, $20 PT) which tracks the same thesis: we believe the GSEs have a significant opportunity to create value from technology enhancements aimed at reducing origination costs and improving affordability, but the flexibility and motivation to leverage technology may be conditioned on achieving capital relief, or at least getting onto a more sustainable path to eventually exit conservatorship. We especially see the opportunity to create longer-term value from combining the tech capabilities within each Enterprise, namely by merging Freddie Mac's underwriting mainframe, Loan Product Advisor (LP) with Fannie Mae's mainframe, Desktop Underwriter (DU). In this effort, we envision the GSEs leveraging the infrastructure which has already been developed under the Common Securitization Platform (CSP), which was rebranded as U.S. Fin Tech last year, and operates with an independent CEO."

For an analyst ratings summary and ratings history on Freddie Mac click here. For more ratings news on Freddie Mac click here.

Shares of Freddie Mac closed at $8.00 yesterday.

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