UPDATE: Oppenheimer Downgrades Lender Processing Services Following End of "Go-Shop" Period

In a report published Thursday, Oppenheimer analyst Glenn Greene downgraded the rating on Lender Processing Services (NYSE: LPS) from Outperform to Perform.

In the report, Oppenheimer noted, “LPS's go-shop period (in conjunction with Fidelity National (FNF) merger agreement) ended on July 7th with no formal alternative acquisition proposals. Reflecting less likelihood of a superior bid, limited upside (~2%) to the implied merger consideration, and incremental fundamental risk given the recent sharp fall-off in refinance volumes, we downgrade LPS to Perform (from Outperform) and remove our $36 PT. As superior offers appear unlikely, we view LPS stock upside as limited to the terms of the merger agreement with FNF. FNF shares currently trade at ~$24, which suggests total consideration to LPS of $32.70, or only 2% above LPS's current share price. We also reduce our estimates to reflect the recent sharp decline in refinance volumes.”

Lender Processing Services closed on Wednesday at $31.92.