B. Riley FBR analyst Randy Binner raised his price target for Fannie Mae to $3 from $2 while maintaining a Neutral rating on the shares. While the combination of the recent Treasury report, the Fifth Circuit Court decision, and comments from regulators "are constructive for all shareholders, the equity still faces a wide range of outcomes given significant dilution from a potential recap," Binner tells investors in a research note. He continues to believe the junior preferreds "have much less dilution risk." The analyst continues to view Fannie Mae common and preferred securities as a call option on a "large and increasingly sophisticated financial company" that could "thrive" in the private market.