Analyst Raises Freddie Target

Sandler O'Neill & Partners has raised its price target for Freddie Mac's stock to $74, citing "too steep a discount" in the current price relative to Fannie Mae's shares. Previously, Sandler O'Neill had pegged a $65 target to Freddie Mac. Analyst Mike McMahon said that currently Freddie Mac's stock trades at about a 40% discount to Fannie Mae. The new 12-month price target reflects a more rational 25% discount, he said in a report. A likely catalyst for an increasing share price is the release of the company's 2003 earnings at the end of June, he said. Freddie Mac shares were trading at $59.27 just before 1 p.m., down nearly 2% from its opening price.