(LPS) Lender Processing Services – Bear of the Day

Lender Processing Services’ (LPS) second-quarter 2011 results were a mixed bag. Although Lender Processing surpassed the Zacks Consensus Estimate, growth slowed year over year. We are concerned about the high debt on its balance sheet as well as challenging origination and default market. There is a possibility of further foreclosure delays.

Moreover, the company is anticipating near-term challenges on account of significant changes in the origination volumes. Hence, we maintain our Underperform recommendation on the shares.

Our six-month target price of $15.00 equates to about 6.3x our estimate for 2011. The target price implies an expected total negative return of 10.6% over that period.

LENDER PROC SVC (LPS): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Business Services | Services

RSS feeds: Lender Processing Services Inc | LPS | Business Services | Services |

Other Posts by | RSS Feed for this author