Jefferies says Hawley letter ‘political theater,’ won’t impact FICO strategy

Jefferies reiterates a Buy rating on FICO after Senator Josh Hawley this week wrote a letter to a U.S. assistant attorney general calling for an investigation into the company due to recent price increases and alleged anti-competitive practices. The analyst sees “little merit” to the letter, calling it “political theater.” While the stock has reacted negatively, the letter “is more about political positioning than it is about the merits of the referral,” the analyst tells investors in a research note. Jefferies sees the letter having no measurable impact on FICO’s strategy. The firm says the Justice Department is unlikely to act upon the referral for several reasons and that if an an investigation is opened up, it will be closed quickly without action.