Zacks Investment Research upgraded shares of Lender Processing Services, Inc. (LPS) from UNDERPERFORM to NEUTRAL on November 05, 2013, with a target price of $36.00.
Lender Processing reported modest third quarter 2013 results as earnings and revenues decreased year over year. Lender Processing's technology-driven end-to-end solutions for the mortgage and real estate industries as well as contract renewals are likely to aid in generating decent business growth and position it to capitalize on market recovery. However, continued underperformance in Default Services and sustained macroeconomic uncertainty refrain us from being bullish on the stock. Additionally, the company's business model is highly sensitive to government regulation, political risk and litigation issues which remain headwinds in future. Nevertheless, we are changing our long-term recommendation for the stock from Underperform to Neutral as we expect it to perform in-line with the broader market.
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