Fannie, Freddie Get First Bull on Wall Street in Deutsche Bank

Federal National Mortgage Associationand Federal Home Loan Mortgage Corp. received their first buy recommendation from Wall Street on Thursday, as Deutsche Bank said the stocks’ dizzying rally can go further on expectations the mortgage giants will possibly be released from government control in the near future.

Fannie Mae shares have jumped more than 320% year-to-date and Freddie Mac shares have surged 288% for the same period. While both were delisted from the New York Stock Exchange in 2010, their shares are bought and sold over the counter, where trading is often volatile.

We “see attractive upside for both stocks ...