Dick Bove Thinks Fannie Mae Could Be Worth $18 Per Share

Noted bank analyst Dick Bove of Rafferty Capital Markets thinks Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) can rise to $18 per share.

Speaking on Fox Business with Charlie Gasparino, Bove’s logic is that the company is currently earning $1.60 per share.  With a ten to twelve times earnings multiple applied to the stock, Bove thinks it could easily trade near $18 per share with one major caveat: The US Government needs to return the stock back to shareholders.

US government put Fannie Mae stock into conservatorship

In 2008 the government, under the auspices of the Housing Recovery Act, put Fannie Mae / Federal National...