Latest news with #FICOScores
CNBC
3 days ago
- Business
- CNBC
Here are Wednesday's biggest analyst calls: Nvidia, Apple, Broadcom, Microsoft, Teva, AutoZone, Vail & more
Here are Wednesday's biggest calls on Wall Street: Truist initiates Teva as buy Truist said Teva is best positioned to "rival" big pharma. "We initiate coverage on TEVA ahead of its upcoming investor day with a BUY rating and $25 PT." UBS reiterates Apple as neutral UBS said its checks show an "uptick" in foot traffic following the tariff announcements. "Following the announcements of US imposed tariffs across China and Southeast Asia in early April, anecdotal iPhone checks indicated an uptick in foot traffic in Apple stores and other smartphone point of sale outlets like Best Buy and telecom operator stores." Mizuho reiterates Broadcom as outperform Mizuho said Broadcom remains a top pick ahead of earnings next week. "Reiterating our Outperform, RAISING F27E estimates 5-10% above consensus, and raising our PT to $300 (prior $250)." Goldman Sachs downgrades Booz Allen Hamilton to sell from neutral Goldman said it sees limited earnings growth upside for the government defense contractor. "We downgrade BAH t o Sell from Neutral as we see limited revenue and earnings growth over the medium-term, while valuation still has downside risk." Baird upgrades Fair Isaac to outperform from neutral Baird said investors should buy the dip in the credit score company. "We consider FICO Scores the best financial model we've seen, think it has a very attractive market position and provides systemic value, believe it will continue to plan to manage to Scores pricing increases, and we expect material eventual mortgage volume normalization/recovery." William Blair initiates Centrus Energy as outperform William Blair said the energy company is a nuclear beneficiary. " Centrus Energy is uniquely positioned as the only U.S.-owned uranium enricher, providing advantages in both technology and national security." TD Cowen downgrades Freshpet to hold from buy TD Cowen said it's concerned about slowing growth for the pet food company. "We downgrade Freshpet to Hold to reflect our concerns about decelerating retail sales growth trends." Redburn Atlantic Equities initiates Arista and Broadcom as buy The firm said both stocks are "our preferred" AI data center plays. "We initiate coverage with Buys on Broadcom and Arista." Bank of America reiterates Microsoft as buy Bank of America said Microsoft is a winner in the small- to mid-size software business market. "We highlight Microsoft, Intuit and HubSpot as key winners in SMB [small and mid size business] software, addressing large markets, with formidable advantages stemming from large installed bases, product depth/breadth and robust sales channels." Bank of America reiterates AutoZone as buy Bank of America said the auto parts company is "recession resilient" following earnings. "We reiterate our Buy rating and our $4,800 PO to reflect our confidence in AZO's recession resilient history, ongoing share gains in both DIY [do it yourself] and Pro, potential inflation benefit from price increases, potentially more favorable used vs. new car dynamics, continued Pro tailwind from maturing commercial programs and rollout of hubs and mega hubs." JPMorgan upgrades Vail to neutral from underweight JPMorgan said the skiing and resort company is at an inflection point. "With MTN reaching the end of industry normalization headwinds exiting FY25 & leadership bolstered by the return of former CEO Katz, we see a potential top/bottom line inflection point supported by idiosyncratic growth opportunities..." Bank of America initiates Primo Brands as buy Bank of American said the bottled water company is a share gainer. "We initiate on Primo Brands (PRMB) with a Buy rating and $42 PO, based on 12x our 2026E EV/EBITDA, a discount to 14x peer-average given relative lower free cash flow conversion." Truist upgrades State Street to buy from hold The firm said the bank could be a beneficiary of the "upturn in equity markets." "We think this setup could be a catalyst to help STT recapture some of its underperformance vs. BK & the broader bank group of late. The company also recently announced its permanent CFO - the search hadn't been a real overhang, but the reduced uncertainty from a solid hire is still helpful." Truist downgrades Bank of New York Mellon to hold from buy Truist downgraded the stock mainly on valuation. "To be clear, we still think BNY will be a long-term success story and continue to be a quality compounder. ... Why give up a good thing? Some of it is just taking a breather after a very strong run..." Evercore ISI reiterates Arista, Cisco and Nvidia as outperform The firm said in an industry note that the three stocks are well positioned in the AI switching market. "This market can be broken down into four major groups: 1) Top 4 US Hyperscale ($14.6B), 2) Top 3 China Hyperscale ($3B), Rest of Cloud ($5.2B), and Enterprise ($5.6B). Within these markets, we expect Arista , Celestica, and Nvidia to be the major players in the two non- China cloud markets. Cisco in partnership with Nvidia looks best positioned in Enterprise market with Arista likely to be the number two player after Cisco/Nvidia." JPMorgan upgrades Noble to overweight from neutral JPMorgan said it likes the offshore driller's dividend. "We recently hosted NE's CEO and CFO on a NYC roadshow. The key takeaway from our investor meetings was management's confidence it could secure incremental term work for its deepwater floater fleet to boost earnings visibility in 2026, although near-term conditions remain choppy in both the deepwater and harsh environment jackup markets." Benchmark initiates Sonic Automotive as buy Benchmark said the auto dealer is well positioned. "We are initiating coverage of Sonic Automotive (SAH) with a Buy rating and $76 price target.." Bank of America reiterates Seagate as buy The firm raised its price target on the stock to $135 per share from $125. "We hosted Seagate CFO Gianluca Romano for meetings in NYC on May 27th & walked away from the meeting very encouraged by the medium and l-t targets set out at the investor day. UBS reiterates FedEx as buy UBS lowered its price target on the stock to $311 per share from $331. "We believe the backdrop for FDX in 4QF25 was more volatile and likely somewhat weaker than expected in their international business relative to their commentary from the 3Q earnings call in March."
CNBC
3 days ago
- Business
- CNBC
Baird upgrades credit scoring stock after plunging on regulatory concern
Regulatory risks looming over Fair Isaac are overblown, according to Baird. The investment firm upgraded the credit scoring firm to outperform from neutral. Analyst Jeffrey Meuler did lower his price target to $1,900 from $2,021, but that still points to 26% upside. Shares of Fair Isaac have tumbled 24% this year, as the company faces pressure from Federal Housing Finance Agency director Bill Pulte, who has expressed disappointment over the company's rising costs to pull credit reports. FICO YTD mountain FICO YTD chart That said, Meuler thinks Fair Isaac shares are now attractively valued. "We were concerned with its valuation/expectations and risks to its ongoing aggressive price realization relative to what the market seemed to be discounting," he added. "We believe the pullback makes both upside potential and magnitude of downside risk more attractive from here." Meanwhile, the company's business model remains solid. Not only are FICO scores an industry-standard consumer credit risk metric, but they are also deeply embedded in end markets, making switching a costly and time-consuming endeavor. "We consider FICO Scores the best financial model we've seen, think it has a very attractive market position and provides systemic value, believe it will continue to plan to manage to Scores pricing increases, and we expect material eventual mortgage volume normalization/recovery," Meuler wrote. While regulatory risks are certainly a threat to keep in mind, Meuler added that they are now much better priced in. More importantly, regulating Fair Isaac's pricing would likely require new legislation, which is a "low-probability potential outcome." Additionally, the company could begin to see growth opportunities in other segments. "Outside mortgage, FICO Scores costs are low, and it may be in the early stages of more aggressive price realization in Auto, with plans to increase Scores monetization elsewhere in coming years," Meuler wrote.
Yahoo
23-05-2025
- Business
- Yahoo
RBC, Jefferies Back Fair Isaac Corp. (FICO) After Stock Declines
RBC remains optimistic on Fair Isaac Corp. (NYSE:FICO) after the recent comments from Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), led to selling pressure on the stock. In his note on May 20, an RBC analyst noted that while speaking at a Mortgage Bankers Association conference, the FHFA Director raised concerns about FICO's high costs and said they are actively addressing them. In addition, he called for a shift from tri-merge to bi-merge credit scores in the underwriting process, which, if implemented, will decrease FICO's scores volume. A portfolio of mortgage-backed securities with a magnifying glass, emphasizing the detail of credit risk management. The RBC analyst also highlighted that Mr. Pulte discussed the potential privatization of the government-sponsored enterprises (GSEs) Fannie Mae (FNMA) and Freddie Mac (FMCC). The analyst believes privatization would mean more competition for FICO's mortgage credit score business. However, his analysis suggests that GSE privatization will not materially impact FICO's business. He therefore maintained his Outperform rating with a price target of $2,170. On May 21, an analyst from Jefferies also expressed his bullish stance on FICO, believing the development to be temporary. He mentioned that while the scrutiny over mortgage costs is fair, FICO's credit-scoring fees are less than 1% of closing costs. He believes both these developments will have a manageable impact and that FICO's long-term growth prospects remain intact. He called the decline an opportunity to accumulate and reiterated his Buy rating with a $2,500 price target. Fair Isaac Corp. (NYSE:FICO) is an applied analytics company that provides software and the widely used FICO Score. It also offers consumers online services that enable them to access and understand their FICO Scores, the standard measure in the U.S. of consumer credit risk. While we acknowledge the potential of FICO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FICO and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
22-05-2025
- Business
- Yahoo
VantageScore vs. FICO: How these two major credit scoring models compare
When you apply for a credit card or loan, creditors need a quick way to determine if you're trustworthy. How do they do it? Before the invention of credit scores, they had to get creative. Creditors relied on anything from letters of recommendation to financial background checks, and some just used their personal judgment. Thanks to FICO, things have changed. FICO gave creditors a way to quickly assess your borrowing eligibility with a three-digit credit score that reflects your history of paying back debt. Today, most creditors still use FICO Scores, but around 10% now use VantageScore credit scores instead. And the score they choose can affect your chances of being approved. This embedded content is not available in your region. Fair Issac and Company (FICO) is the company that developed the first credit score model back in 1989. When it comes to credit scores, FICO is the gold standard — their scores are used in an estimated 90% of lending decisions today. As far as how your credit scores are calculated, FICO considers several different categories of information in your credit reports and weighs each one differently. For example, your payment history makes up 35% of your FICO Score calculation, while your length of credit history only accounts for 15%. While some versions of the FICO Score range from 250 to 900 points, most range from 300 to 850. For the most widely used version of the FICO Score — the FICO Score 8 — the maximum number of points you can obtain is 850. Regardless of which version of the FICO Score you pull, you don't need to earn a perfect 850 score to have good credit. According to FICO, anything between 670 and 739 is a "good" credit score, while 740 to 799 is "very good." If FICO is the veteran of the credit score world, VantageScore is the up-and-coming rookie. VantageScore is a credit scoring company created by the three major credit bureaus (Equifax, Experian, and TransUnion) in 2006. Its goal is to produce scores that are the same for consumers across all three bureaus. Similar to FICO, VantageScore credit scores are pulled by creditors to help them determine if you qualify for credit cards and loans. They're also based on the information found in your credit reports, including your payment history, debt balances, and applications for new credit. VantageScore and FICO consider the same factors when calculating your credit scores, but they weigh them somewhat differently in each of their scoring models. As a result, there can be variation between your FICO and VantageScore credit scores, or even two scores from the same company. Here are some of the other main differences between the two: Popularity/market share: FICO is better established in the credit-scoring industry, and far more creditors rely on FICO to make their loan and credit card decisions. Generating new scores: If you have limited credit history, you may have VantageScore credit scores but not FICO Scores. That's because VantageScore can generate scores as soon as you open your first debt account. With FICO, it takes six months. Points awarded: In the past, it was normal to have VantageScore credit scores that were higher than your FICO Scores, but now it can go either way. The average FICO Score is currently 715, and the average VantageScore credit score is 702. There's a good chance you already have free access to at least one version of your FICO or VantageScore credit scores, since many banks, credit unions, and credit card issuers provide it as a perk for their customers. If not, you can sign up for Chase Credit Journey for a free VantageScore or CapitalOne CreditWise for a free FICO Score — even if you're not a Chase or CapitalOne customer. Additionally, you can see your free TransUnion VantageScore by signing up for My Money from Yahoo Finance. If you need more options, try one or both of these: Check the VantageScore website to see if your financial institution provides free VantageScore access. Sign up for FICO's Free Plan to get access to your FICO 8 Score. VantageScore credit scores are different from FICO Scores, but they're not more accurate. In terms of popularity with creditors, FICO Scores are used by creditors far more often. The majority of lenders use FICO credit scores when determining if you qualify for loans, including mortgages, car loans, and personal loans. There's no way to convert a VantageScore to a FICO Score, or vice versa, since each company has its own way of calculating credit scores.
Yahoo
15-04-2025
- Business
- Yahoo
Sen. Josh Hawley calls on DOJ to investigate FICO
ST. LOUIS – 'I think the rates credit card companies are charging are outrageous,' U.S. Senator Josh Hawley said during an October 2024 debate. Even before the Senate debate hosted by FOX 2 in November, Sen. Hawley wanted more accountability in the financial services industry. Now in his second Senate term, he's again taking aim at Fair Isaac Corporation, or FICO. Earlier this month, Hawley sent a letter asking the Department of Justice to investigative FICO, alleging anticompetitive practices and repeated price hikes. 'There's only one company in America who basically does those FICO scores, and what they charge to consumers is outrageous, and it goes up every year, and most of the time, you don't know about it 'til you get billed,' Hawley said. Family sues youth league after teen's suicide following coach's alleged abuse Hawley told the DOJ, 'FICO enjoys a sweetheart deal from the federal government wherein its credit scores are required for loans originated with multiple government entities.' Hawley says FICO has abused its government-granted market power. 'Some bank runs your FICO score. You've got to pay for it. You go to buy a car; a car dealer runs your FICO score. You've got to pay for it. You get charged,' he said. 'The charges go up and up and up, and nobody can afford it, and nobody has given me given any option to opt out of it or have a competitor do it instead.' FOX 2 reached out to FICO to inquire about these allegations. The company responded with a statement: FICO continues to compete vigorously across consumer credit markets, and the FICO Score has long been freely chosen by lenders, investors, and other participants across consumer credit markets because it is trusted as the most predictive and reliable credit score, enabling lenders to fairly expand credit access to American consumers. The success of the FICO Score is not due to any government action in the mortgage market. In fact, the vast majority, approximately 99%, of FICO Scores used for decisioning across the consumer credit industry are used outside mortgage originations. And even within the mortgage market, lenders originate nearly thirty percent of all mortgages outside the Fannie Mae and Freddie Mac programs but still choose to use FICO Scores for those mortgages. The royalty collected by FICO remains a small percentage of the cost of the tri-merge credit report and score bundle (on average approximately 15% of the $80 to well over $100 tri-merge bundle cost), which is itself an exceedingly small share of overall mortgage closing costs. The FICO Score represents less than 2/10 of 1% of the approximately $6,000 in average closing costs for a mortgage—also compelling value given the central role the FICO Score plays in the origination of approximately $2 trillion in mortgages each year. 'This needs to stop. I've asked for investigation into their anti-competitive practices,' Hawley said. 'I just think this is a basic protection of American consumers and Missouri consumers. We are getting ripped off here by these people that it needs to stop.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
