Kyle Peterson, an analyst from Needham, reiterated the Buy rating on Fair Isaac (FICO – Research Report). The associated price target remains the same with $2,575.00.
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Kyle Peterson has given his Buy rating due to a combination of factors, primarily focusing on Fair Isaac’s recent announcement of a new $1 billion share repurchase authorization. This decision follows the completion of a previous buyback program, indicating that the company has been actively repurchasing shares, which is seen as a strategic move in light of recent stock price fluctuations.
The buyback is perceived as a strong signal from management that the current stock valuation is not justified, suggesting confidence in the company’s financial health and future prospects. Additionally, the buyback could potentially enhance the company’s earnings per share, adding approximately $0.25 to $0.30 annually, depending on the repurchase prices. These factors collectively support the reiteration of the Buy rating and the target price of $2,575, reinforcing Fair Isaac’s position on the Needham Conviction List.
According to TipRanks, Peterson is a 3-star analyst with an average return of 4.1% and a 47.62% success rate. Peterson covers the Technology sector, focusing on stocks such as Fair Isaac, Alight, and Broadridge Financial Solutions.
In another report released on June 13, RBC Capital also maintained a Buy rating on the stock with a $2,170.00 price target.