Apr. 11 at 1:51 PM
The bull and bear cases for
$FICO FICO are now sharply defined.
Bears point to a regulatory and competitive assault on the Scores segment's pricing power (the engine that drives essentially all of FICO's economics).
Bulls note that consensus analyst price targets sit around
$2,068, implying roughly 87% upside from current levels, and that the business continues to grow revenue and earnings even as the stock craters. The main argument is that FICO remains the gold stanard in the industry.
Whether the moat (built on mandatory lender usage, decades of credit model validation, and deep integration into the mortgage origination stack) is structurally impaired or temporarily under political pressure is the question that will determine whether this is a value opportunity or a value trap.
