Needham Reduced the PT on Fair Isaac Corporation (FICO), Maintained a Buy Rating

Fair Isaac Corporation (NYSE:FICO) is one of the Best Extremely Profitable Stocks to Buy Right NowOn July 17, Kyle Peterson from Needham reduced the price target on Fair Isaac Corporation (NYSE:FICO) from $2,574 to $1,950. However, the analyst maintained a Buy rating on the stock.

The analyst acknowledged that the share price of the company dropped after the approval of VantageScore 4.0 by Fannie Mae and Freddie Mac. However, he believes this is a short-term drop and highlighted several strategic options for the company. He noted that Fair Isaac Corporation (NYSE:FICO) can still adjust pricing for auto scores, execute stock buybacks, and optimize administrative expenses in its software division to sustain an EPS growth rate of 20%.

Needham Reduced the PT on Fair Isaac Corporation (FICO), Maintained a Buy Rating

A hands-on approach: technicians working on data management products in an open lab space.

Although Peterson reduced the price target on the stock, he sees the company’s risk-reward dynamics attractive at current levels.

Fair Isaac Corporation (NYSE:FICO) is an analytics software company that uses predictive analytics and data science to help businesses make better operational decisions.

While we acknowledge the potential of FICO to grow, 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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.