UPDATE: DA Davidson Raises Target to $22 on Lender Processing Services

DA Davidson maintains its Neutral rating on Lender Processing Services LPS and raises its price target by $2 to $22 on increased estimates given potential catalysts from last week's bank settlement related to mortgages. DA Davidson says, "We are lowering our Q1 estimates (mainly to account for seasonality) but raising our FY 2012 assumptions as we believe the massive mortgage-related settlement announced last week may be a catalyst for banks to more rapidly process delinquencies. Further, while confidence in our 2013 outlook is low, we are initiating a revenue estimate of $2.1 billion, up 5%, and pro forma EPS of $2.70, up 10%." LPS closed at $20.17 a share on Tuesday.