FICO upgraded to Outperform from Neutral at Baird

Baird upgraded FICO (FICO) to Outperform from Neutral with a price target of $1,900, down from $2,021. The material share pullback on “changing regulatory risk perception” returns FICO to a valuation that can enable good multi-year upside, while reducing the magnitude of potential downside risk, creating a favorable risk/reward, the analyst tells investors in a research note. The firm considers FICO Scores the best financial model it has seen. The company has a “very attractive” market position and provides systemic value, contends Baird. It believes the company will continue to plan to manage to Scores pricing increases, and expects material eventual mortgage volume normalization. While FICO’s regulatory risks are real, they are now better priced into the shares and “likely reasonably manageable.”