Oppenheimer Has Perform Rating Lender Processing Services (LPS)

Oppenheimer & Co. has a Perform rating on shares of Lender Processing Services LPS. In a note to clients, Oppenheimer writes, "Our review of quarter-to-date foreclosure start activity confirms our cautious view regarding LPS's Default Services revenue trends. Accordingly, we are further reducing our below consensus estimates. Despite its attractive valuation, strong free cash flow and solid execution, we maintain our cautious view toward LPS as foreclosure starts continue to abate, and mortgage originations (especially refi) likely remain soft throughout 2011. We expect LPS to mitigate EPS pressure through cost take-out initiatives and aggressive share repurchases." Shares of LPS gained 30 cents yesterday to close at $32.59.