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Fair Isaac Corporation
Fair Isaac Corporation (NYSE: FICO) provides analytical software and data management solutions to businesses to help them automate, improve, and connect their decisions. The company operates in two divisions: Software segment containing decision management solutions built for a specific type of business processes such as account creation, customer management, fraud detection, and financial crime compliance. Scores include B2B scoring systems and services that provide clients with projected credit and other scores.
Why Should Investors Book Profit?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation:
FICO's share price has surged 21.16% in the past three months and is currently leaning towards the mid-high band of the 52-week range of USD 342.89 to USD 553.97. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 401.56. Considering the company's highly leveraged balance sheet, rising interest rates, weak liquidity profile, current valuation, and other resistance at the current levels, we recommend a "Sell" rating on the stock at the closing price of USD 493.12, up 16.58% as of January 28, 2022.
Three-Year Technical Price Chart (as of January 28, 2022). Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.