Duncan-Williams Has $40 Target On Lender Processing Services (LPS)

Duncan-Williams has a $40 price target and a Buy rating on Lender Processing Services, Inc. LPS. In a note sent to investors Duncan-Williams writes, "Based on our ongoing review of loan delinquency and foreclosure data, we continue to believe that LPS' Default Services revenue will remain stronger than the market expects over the next few years. Despite near-record levels of foreclosure starts and government mandated loan modification efforts, the pool of 90+ day delinquent loans stood at 2.2mn at the end of October, around the same level as mid 2009. Moreover, the average length of delinquency of the 90+day delinquent loans stood at 318 days at the end of October (up from 196 days in early 2009), implying that the vast majority of these loans are highly likely to fall into foreclosure." Shares of LPS lost 39 cents yesterday to close at $30.77, a loss of 1.25%.