Independent research firm Stephens took a look at the performance expectations of CoreLogic (CLGX) next year and reports the mortgage services firm continues to stand out in a tough default market.
In regards to mortgage origination, the fourth quarter numbers are predicted to come in relatively conservative, according to analyst Carter Malloy, as the refinancing market is projected to increase gradually. Stephens speculates the purchase market should only decrease slightly.
"Although the default market remained slow in 4Q12, our channel checks indicate that CLGX continues to take share in field services," Malloy wrote in a note to clients.
The consensus earnings before interest, taxes depreciation and amortization estimate of $99 million appears beatable.
In 2013, CoreLogic is well positioned to respond to a strong shift from refi back to purchase volumes. The company also predicts a $40 million to $50 million efficiency boost in spite of further mortgage default market headwinds.
Currently, CoreLogic trades at 7.6 times the 2013 EBITDA estimate.