Wolfe Research Downgrades Fair Isaac (FICO) to Peerperform

Wolfe Research analyst Scott Wurtzel downgraded Fair Isaac (NYSE: FICO) from Outperform to Peerperform.

The analyst comments "We are downgrading shares of FICO to Peer Perform from Outpeform, and setting a fair value range of $1,100-$1,350. Near-term estimate upside remains, but competitive dynamics with VantageScore are becoming more apparent and real. ● What Changed? Frankly, market share concerns became more apparent and real. While we always suspected there would be some shift from FICO to VantageScore given the potential for gaming, the magnitude of potential gaming was higher than what we had initially thought. Management noted that the 9% of market subject to gaming was when it compared FICO 10T to VantageScore 4.0, but that number rises to 20%+ with FICO Classic. 10T is in the process of being approved for use by the FHFA/GSEs; however, the timing of approval remains uncertain. In the interim, FICO may be subject to more share loss with FICO Classic and even once 10T is eventually approved, it may take time for the market to fully shift over. In a world where FICO 10T completely replaces FICO Classic, we see the potential for FICO to regain share from VS 4.0, though this may take time given approvals and adoption."

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 $1122.97 yesterday.

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