BUZZ - Jefferies drastically lowered Fair Isaac’s target price as the threat posed by VantageScore increases

November 2 -

** Jefferies lowered the target price for credit scoring giant Fair Isaac (FICO.N) from $1,675 to $925, but this level still leaves 30% upside compared to the stock's recent closing price.

** The brokerage lowered its fiscal 2027 revenue forecast by 23% to $2.25 billion, and adjusted its earnings per share (EPS) forecast down by 38% to $32.33, reflecting the company’s anticipated market share loss in the mortgage credit scoring sector.

** Jefferies expects that, as competitor VantageScore gains momentum, FICO could face a mortgage revenue loss of $635 million in calendar year 2027 due to market share erosion.

** Last month, the company announced it would cut about 15% of its workforce (link) to streamline management, simplify operations, and integrate AI-driven product development.

** According to data compiled by London Stock Exchange Group (LSEG), out of 23 analysts, 13 rated the stock as “strong buy” or “buy”, 8 as “hold”, and 2 as “sell”; the median target price is $933.5.

** Including the day’s decline, the stock has fallen by 57% so far this year.

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