Analyst Kyle Peterson from Needham reiterated a Buy rating on Fair Isaac and decreased the price target to $1,950.00 from $2,575.00.
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Kyle Peterson has given his Buy rating due to a combination of factors that continue to support a positive outlook for Fair Isaac’s stock. Despite recent developments where VantageScore 4.0 has been approved by Fannie Mae and Freddie Mac, which initially caused a decline in FICO’s share price, Peterson remains optimistic about the company’s prospects.
He points out that Fair Isaac has several strategic options at its disposal, such as adjusting auto scores pricing, executing stock buybacks, and optimizing general and administrative expenses within its software division, which could sustain an earnings per share growth of over 20%. Furthermore, his valuation analysis indicates a strong risk-reward profile at the current stock levels, reinforcing his confidence in maintaining a Buy rating, albeit with a revised target price of $1,950.
According to TipRanks, Peterson is a 4-star analyst with an average return of 6.7% and a 48.42% success rate. Peterson covers the Technology sector, focusing on stocks such as Fair Isaac, Alight, and Affirm Holdings.
In another report released today, Wells Fargo also reiterated a Buy rating on the stock with a $2,300.00 price target.