UPDATE: Goldman Sachs Upgrades Lender Processing Services to Buy on Upcoming Multiple Expansion

Goldman Sachs upgrades Lender Processing Services LPS from Neutral to Buy and establishes a $27 price target on shares. Goldman Sachs comments, "We upgrade LPS to Buy as clearing legal risks and increased loan and foreclosure volume growth should fuel further multiple expansion. …Admittedly, with LPS shares up 58.5% year-to-date vs. a 6% increase for the S&P 500, our call follows a significant move in the shares; however, we believe that the year-to-date move in the shares has principally reflected the clearing legal and regulatory overhang. From a coverage positioning perspective, LPS fits with our preference for US-based revenue models (100% of revenues) focused on outsourced services." LPS closed at $23.53 on Monday.