Piper Jaffray Cuts Price Target on Fidelity National Financial (FNF); Forecasting 3% Revenue Decline in 2016

Piper Jaffray reiterated an Overweight rating on Fidelity National (NYSE: FNF), and cut the price target to $42.00 (from $45.00), following the company's 4Q and conference call. FNF reported revenue of $1,933M, beating consensus revenue estimates of $1,861M. FNF continues to see solid commercial activity, though Piper Jeffray decided to forecast a more conservative outlook with a 3% commercial revenue decline in ’16.

Analyst Jason Deleeuw commented, "Following FNF’s conference call, we maintain our ’16/’17 EPS estimates of $2.50/$2.80, as we forecast a softer commercial title outlook offset by higher residential refinance revenue. While our earning power outlook is unchanged, we believe the recent interest rate decline has improved sentiment on the shares, which have offensive and defensive characteristics under a number of macro/interest rate scenarios. Our PT moves lower from $45 to $42, as we now use a 15.0x (previously 15.5x) P/E multiple on Title and a 14.0x (previously 15.0x) EV/EBITDA multiple for BKFS. We reiterate our OW rating."

For an analyst ratings summary and ratings history on Fidelity National click here. For more ratings news on Fidelity National click here.

Shares of Fidelity National closed at $30.72 yesterday.

You May Also Be Interested In

• Citi Downgrades ICICI Prudential Life Insurance Co Ltd. (IPRU:IN) to Neutral
• Crescent Point Energy (CPG:CN) (CPG) PT Raised to Cdn$16 at Stifel Canada
• Lundin Mining Corp. (LUN:CN) (LUNMF) PT Raised to Cdn$16.50 at Stifel Canada