Fair Isaac Corporation’s (FICO) Upside Driven By Margins

Analysts at Northland Securities maintained a price target of $26 for Fair Isaac Corporation (NYSE: FICO) based on the valuation metric of EV/11 Adjusted EBITDA of 7.3X.

The firm believes that the upside for FICO is mainly the result of strong gross margins. Management maintained the guidance for earnings growth regardless of a higher tax rate and interest expense. The firm expects stability in the revenues and macro signs of recovery for Fair Isaac Corporation.

FICO bought back $33.4 million of stock at $19.24 per share during the quarter. An Outperform rating was reiterated for FICO.