Fair Isaac's Window for Price Increases is Over

Dow Jones10-26 22:04

10:04 ET--Fair Isaac's pricing power appears to be capped, JPMorgan analysts say. FICO, which on Friday held its price of $10 for mortgage lenders to use its FICO score, is under stark volume pressure, and lenders are increasingly being incented toward competitors, the analysts say in a research note. For instance, FICO's pricing is more than double the roughly $4 it costs for mortgage lenders to pull a credit score using VantageScore, according to the credit bureau TransUnion. As a result, JPMorgan says the window for price increases at FICO is closed for now, and the bank cuts its price target for the stock to $900 from $1,530. Shares are down 4.5% shortly after Monday's opening bell.

 
 

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