FICO initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of FICO with an Overweight rating and $2,100 price target. The stock’s sizable premium relative to historical multiples is warranted given the long runway and willingness to raise prices in Scores after years of not doing so, the analyst tells investors in a research note. FICO’s strong Software business momentum following the platform shift should also see continued growth and margin expansion, the firm added.