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Investing.com - BMO Capital has reduced its price target on Fair Isaac (NYSE:FICO) to $2,200 from $2,300 while maintaining an Outperform rating on the stock. The analytics software company currently trades at a P/E ratio of 63.9, according to InvestingPro data.
The research firm noted that Fair Isaac reported earnings that significantly beat consensus estimates, driven primarily by margin performance. InvestingPro data shows the company maintains impressive gross profit margins of 81.75%. The company also repurchased approximately $550 million in shares during the fourth quarter of fiscal year 2025, exceeding its previous quarterly record for share repurchases, confirming the ProTip that management has been aggressively buying back shares.
BMO Capital indicated that Fair Isaac’s initial guidance for fiscal year 2026 came in slightly below consensus expectations, attributing this to management adding "extra conservatism" compared to its historical forecasting framework.
The firm highlighted Fair Isaac’s newly announced partnership with Xactus, noting it represents the first reseller to join the FICO Direct License Program.
Despite lowering the price target based on "more recent multiples," BMO Capital maintained its above-consensus estimates for the company and recommended investors purchase shares on any weakness in the stock price.
In other recent news, Fair Isaac Corporation reported its fourth-quarter earnings for 2025, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $7.74, surpassing the forecasted $7.34. Revenues also came in higher than anticipated, reaching $516 million compared to the expected $513.21 million. Despite these strong results, Jefferies lowered its price target for Fair Isaac from $2,150 to $2,100, though it maintained a Buy rating on the stock. The adjustment was attributed to challenges in Fair Isaac’s Software segment, as noted by Jefferies. The company’s robust performance was attributed to significant growth in its Scores segment and strategic innovations. These developments reflect ongoing changes and challenges within Fair Isaac’s business landscape.
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