Raymond James starts ‘unique and impressive’ FICO with Outperform

Raymond James analyst Patrick O’Shaughnessy last night initiated coverage of FICO with an Outperform rating and $1,007 price target. Although the shares have performed well over the past year, further upside remains as investors fully appreciate the pricing power, resilience, and competitive position of the company’s FICO Score business, the analyst tells investors in a research note. The firm says strong execution in the company’s Software segment “adds another component to the long-term revenue growth and margin expansion story.” It views FICO as a “unique and impressive” company with a sustainable double-digit earnings growth outlook that justifies a premium valuation.