RBC Capital Upgrades Fair Isaac (FICO) to Outperform

RBC Capital analyst Ashish Sabadra upgraded Fair Isaac (NYSE: FICO) from Sector Perform to Outperform with a price target of $2,170.00 (from $2,040.00).

The analyst comments: "Stock sell-off, fueled by concerns about GSE privatization, nomination of new FHFA Director, potential risks to FY25 guidance from higher rates impacting mortgage volume, and a slowdown in Platform ARR, has created an attractive buying opportunity. FICO's dominant position for mortgage scores remains intact driving strong pricing power. Additionally, improvements in Software ACV in 1Q25 and a robust value proposition bolster confidence in the anticipated acceleration of Platform ARR to 30%+. Lastly, we believe FICO's very high incremental margins and management's shareholder-friendly capital allocation strategy protect against downside risks to EPS."

For an analyst ratings summary and ratings history on Fair Isaac click here. For more ratings news on Fair Isaac click here.

Shares of Fair Isaac closed at $1816.76 yesterday.

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