12:50 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our price target by $14 to $1,001, 35x our FY 25 (Sep.) EPS view, near peers and above FICO's 5-year average (~32x) on strong growth in its platform-based software business and the high likelihood for near-term earnings growth on higher borrowing volumes (spurred by possible interest rate cuts). We raise our FY 24 EPS estimate by $0.30 to $22.81 and FY 25's by $0.41 to $28.60. FICO posts Mar-Q sales of $434M (+14% Y/Y) and EPS of $6.14 (+28%), both just above consensus, while slightly lifting its full-year guide. The Scores business grew 19% Y/Y, driven by 85% Y/Y growth in mortgage originations (36% of Scores sales), exhibiting the potential for strong growth if sizeable cuts come to fruition in FY 24, which we hesitate to assume. NRR for the FICO Platform business fell to 126% in the Mar-Q (from 136% in the Dec-Q and 145% in the Sep-Q), which we see as concerning (despite its strong absolute level) given FICO's high multiple and growth ambitions from expanding customer usage on its cloud platform.