FICO keeps $10 wholesale mortgage score price, sparking sharp stock decline and analyst target cuts
+1 new source since this summary was written
Fair Isaac announced that its Preferred Program will continue to charge lenders a flat $10 wholesale fee for both Classic and 10T credit scores. The news triggered a pre‑market sell‑off of roughly 9‑16% and a closing drop of about 13% on the day. Several banks responded by lowering price targets, including Wells Fargo to $735, UBS to $942, and BMO to $897, while also trimming its fiscal‑2027 EPS forecast to $44.87. Analysts cited heightened competition from VantageScore 4.0 and recent FHFA guidance as the main concerns.
Why it matters
The downgrade and target reductions signal that analysts expect limited earnings upside from the flat‑pricing model. Investors face a lower valuation outlook as the stock fell double‑digit percentages on the announcement.
Key facts
- 1FICO will maintain a $10 wholesale price for its mortgage credit scores under the Preferred Program. seekingalpha.com
- 2The stock fell 9.2% in pre‑market trading after the announcement. seekingalpha.com
- 3Shares closed down about 13% at $708.07 following the news. gurufocus.com
- 4Wells Fargo downgraded the stock to Equal Weight and cut its price target to $735 from $800. investing.com
- 5UBS lowered its price target to $942 from $1,100. investing.com
- 6BMO Capital reduced its price target to $897 and cut its fiscal‑2027 EPS estimate to $44.87 per share. investing.com
Summary written by AlphAI AI Desk from 17 of 17 sources. Not investment advice. Figures are as stated by the linked sources.