Gold prices heading for weekly gains; import tariffs on gold bars?
On Monday, Keefe, Bruyette & Woods affirmed its positive stance on Walker & Dunlop (NYSE:WD) shares, maintaining an Outperform rating with a price target of $95.00. The firm’s analysis highlighted recent competitive strategies by Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC), which are anticipated to be beneficial for Walker & Dunlop.
According to Keefe, Bruyette & Woods, both government-sponsored enterprises (GSEs) have been actively adjusting their pricing and structures to capture more market share. This strategic shift was noted in Friday’s Commercial Mortgage Alert, which reported that Fannie Mae and Freddie Mac are engaging more aggressively to meet this year’s lending caps. Industry insiders believe that these GSEs have robust loan pipelines due to their efforts.
The report also mentioned that Fannie Mae and Freddie Mac have implemented pro-lending changes. Notably, Fannie Mae has introduced a 35-year amortization option for low leverage borrowers, and Freddie Mac has eliminated the SOFR pay-rate test. These modifications are expected to further stimulate lending activity.
Data from Recursion shows a significant year-over-year increase in Fannie Mae’s loan volumes, which reached $22.8 billion through May, marking a 48% surge. On the other hand, Freddie Mac’s volumes remained steady year-over-year through April.
Keefe, Bruyette & Woods suggests that while there is macroeconomic uncertainty that could pose risks, the positive momentum in GSE volumes is particularly favorable for Walker & Dunlop. The firm also noted that other companies like Arbor Realty Trust (NYSE:ABR), CBRE Group (NYSE:CBRE), Jones Lang LaSalle (NYSE:JLL), and Newmark Group (NASDAQ:NMRK) stand to gain from these developments.
In other recent news, Walker & Dunlop Inc . reported its first-quarter 2025 earnings, exceeding analyst predictions with an adjusted core earnings per share (EPS) of $0.85, compared to the anticipated $0.78. The company’s revenue reached $237.4 million, which, despite a 4% year-over-year increase, did not meet the forecasted $260.43 million. Walker & Dunlop maintained its 2025 annual guidance, focusing on investment management and projecting significant contributions from new sales personnel. The firm also expanded into hospitality investment sales and introduced new technology offerings, which are expected to drive future growth. Analysts from various firms have noted the company’s strategic expansions and resilience in the multifamily sector, which accounted for 88% of the quarter’s transaction volume. The company’s CEO, Willie Walker, highlighted the importance of partnerships with government-sponsored enterprises like Fannie Mae and Freddie Mac in enhancing future performance. Additionally, Walker & Dunlop’s total transaction volume grew to $7 billion, marking a 10% increase from the previous year. Despite some operational challenges, including a decline in adjusted EBITDA, the company remains optimistic about its strategic goals for 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.