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UPDATE: Oppenheimer Upgrades Lender Processing Services to Outperform on 1Q13 Results


In a report published Friday, Oppenheimer analyst Glenn Greene upgraded the rating on Lender Processing Services (NYSE: LPS) from Perform to Outperform, and named a $36.00 price target.

In the report, Greene noted, “We believe the TD&A business has an attractive growth and profitability outlook, but is underappreciated and masked by the rapid deterioration since FY10 within Default Services. TD&A represents an increasing proportion of revenue growth, profitability (~70% by FY14) and value. Additionally, we are comforted by the recent resolution of most of LPS's outstanding litigation issues and anticipate that cash could start to return to shareholders by 2H13. Current valuation of 6x EBITDA with a 12% FCF yield is highly attractive and should provide downside protection. Our $36 PT represents 8x FY14E EBITDA and is supported by a sum-of-parts analysis.”

Lender Processing Services closed on Thursday at $25.91.

Latest Ratings for LPS

Jul 2013OppenheimerDowngradesOutperformPerform
Jul 2013BarclaysDowngradesOverweightEqual-Weight
Jun 2013BTIG ResearchDowngradesBuyNeutral

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Posted-In: OppenheimerAnalyst Color Upgrades Analyst Ratings

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