Jefferies raises Fair Isaac price target to $2,500, keeps Buy rating

On Wednesday, Jefferies analyst Robert Moskow increased the price target on Fair Isaac Corporation (NYSE:FICO) shares to $2,500 from the previous target of $2,250. The firm reaffirmed its Buy rating on the stock, signaling confidence in the company’s future performance. With a current market capitalization of $52 billion and impressive gross profit margins of 81%, FICO has demonstrated strong financial execution. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with analyst targets ranging from $1,364 to $3,700.

The revision in the price target came after Moskow attended FICO World 2025 last week, an event that showcased the company’s latest developments and future plans. The analyst expressed a positive outlook on Fair Isaac’s scoring business, noting the potential for further pricing advancements. He also highlighted his optimism regarding the long-term potential of the company’s software platform, which has been receiving significant investment. The company’s strong position is reflected in its robust revenue growth of 14.7% and healthy current ratio of 2.11. InvestingPro subscribers can access 15+ additional exclusive insights about FICO’s financial health and growth prospects.

One of the notable highlights from the event was the unveiling of the next-generation FICO Platform. According to Moskow, this new platform elevates the company’s capabilities to a new scale, suggesting a promising direction for Fair Isaac’s technology offerings.

In light of the insights gained from the event, Moskow has adjusted his forecast for Fair Isaac’s adjusted earnings per share (EPS) for fiscal year 2025. The estimate has been increased by $1.06, bringing it to $29.95. This adjustment reflects the analyst’s increased expectations for the company’s financial performance in the coming years.

Fair Isaac Corporation, known for its credit scoring models, continues to innovate and expand its reach in the financial services industry. The positive assessment by Jefferies underscores the company’s ongoing efforts to evolve and capitalize on new opportunities within its market segment.

In other recent news, Fair Isaac Corporation, commonly known as FICO, reported its second-quarter earnings for fiscal year 2025. The company exceeded earnings expectations with a non-GAAP EPS of $7.81, surpassing the forecast of $7.40. However, FICO’s revenue slightly missed projections, reporting $498.7 million compared to the expected $499.58 million. Despite the earnings beat, the company’s stock experienced a decline following the announcement. Additionally, FICO has priced $1.5 billion in senior notes due 2033, with the proceeds intended to repay existing debts and cover general corporate purposes. BofA Securities recently raised its price target for FICO to $3,700, maintaining a Buy rating, reflecting confidence in the company’s growth potential. The analyst noted key catalysts for growth, including the transition of Falcon Fraud to the FICO platform and the introduction of a new AI model. These developments underscore FICO’s strategic focus on expanding its footprint in the consumer finance technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.