Nomura Instinet analyst Matthew Howlett initiated coverage of Fannie Mae with a Buy rating and $5 price target. The analyst expects a "recap and release" of the government sponsored entities in the next 12-18 months. His price target is based on forecast follow-on pricing for expected capital raises in April 2021. Howlett expects a restructuring and a capital raise that satisfies all parties involved with reasonable values for the existing securities. The analyst thinks GSE conservatorship will end either upon closing of the capital raise or potentially earlier in conjunction with a restoration plan permitted through a consent decree.