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Goldman Sachs Starts Fidelity National (FNF) at Neutral

December 5, 2013 7:19 AM EST Send to a Friend
Get Alerts FNF Hot Sheet
Price: $31.62 -0.66%

Rating Summary:
    2 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 34 | Down: 12 | New: 36
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Goldman Sachs initiates coverage on Fidelity National (NYSE: FNF) with a Neutral. PT $31.00.

"Title insurers are among the most levered stocks to a rebound in total U.S. home sales, as they earn 2x the revenue on purchase transactions as they do on refi," analyst Eric Beardsley states. "Despite our expectations for solid home sales growth in 2014 (+7%), we expect a sharp decline in refi activity (-50% y/y) to be a headwind for title transactions leading to a 25% decline in closed orders. FNF's acquisition of LPS (10-15% accretion to EPS) and potential monetization of non-title investments make us more favorable on its near-term prospects, but the stock look fairly valued at 13.5x our 2014 EPS estimate and with limited upside to our sum-of-the-parts valuation."

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 $28.78 yesterday.




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