(Bloomberg) -- Donald Trump’s decisive victory in the Iowa caucuses has reignited investor optimism that mortgage giants Fannie Mae and Freddie Mac are once again on the road to privatization.

Keefe, Bruyette & Woods analyst Bose George upgraded the pair to market perform from underperform saying the stocks could continue to climb in the near-term on the chances of a close election. The stocks of both firms — which trade over-the-counter for about $1 apiece — rallied more than 10% over the two trading sessions following Trump’s Iowa win. 

During his presidential term, Trump backed an attempt to free the government-sponsored enterprises from conservatorship.   

“While we believe the challenging logistics associated with privatizing the GSEs make the likelihood of privatization relatively low, history suggests that the market believes a Trump administration could potentially accomplish GSE privatization,” George wrote in a note.

“Even if there is a change in the White House and GSE recapitalization efforts resume, we see limited longer-term value in the common shares,” the KBW analyst added.

Read More: Trump-Tied SPAC Jumps After Former President’s Big Iowa Win

Separately, Odeon Capital analyst Dick Bove wrote that movement in the stocks “has always been all about politics.” 

“The game appears to be on again,” Bove said. “The prices of the stocks in these companies are now tied to Mr. Trump’s election chances.”

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