Fair Isaac Downgraded by RBC, Target Cut to $770 on Mortgage Risks

RBC Capital Markets downgraded Fair Isaac Corporation (FICO) to Sector Perform from Outperform. It cut its price target to $770 from $1,045.

The firm cited uncertainty over mortgage score pricing and headwinds from elevated interest rates. It also flagged potential market-share losses to VantageScore, regulatory risks, and the FHFA’s lack of approval for FICO 10T.

RBC said these issues limit visibility into FICO’s revenue and earnings growth for 2027. The downgrade follows the company’s recent fourth-quarter earnings report. Despite strong results, FICO did not provide fiscal 2027 guidance, adding to investor concerns.