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Oppenheimer started coverage of credit score company Fair Isaac (NYSE:FICO), known for its FICO score that consumers depend on for getting credit, with an Outperform rating.
The Score segment constitutes ~51% of Fair Isaac’s (FICO) total revenue, while software used by financial institutions to make lending decisions contributes ~43%.
“FICO has one of the strongest moats in our coverage,” Oppenheimer analyst Owen Lau wrote in a note to clients. “Its Score product is fully embedded into the credit lifecycle and has very high market shares. Its dominance allows FICO to command strong pricing power, but its price is still low compared to the average mortgage closing cost.”
Fair Isaac (FICO) stock slipped 0.5% in early afternoon trading.
Oppenheimer’s Outperform rating on FICO contrasts with the SA Quant rating of Hold and aligns with the average Wall Street rating of Buy.
