Is Brown Advisory’s New Stake in FICO a Vote of Confidence in Its Mortgage Solutions?

• During the second quarter of 2025, Brown Advisory initiated a position in Fair Isaac Corporation, emphasizing its integral role in the mortgage ecosystem and credit risk management despite recent challenges posed by higher interest rates.
• This new institutional support highlights how Fair Isaac's dominant market share and reputation for innovation continue to attract long-term investor interest even in softer lending conditions.
• We'll examine how Brown Advisory's confidence in Fair Isaac's mortgage and credit risk solutions may influence key aspects of its investment outlook.

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Fair Isaac Investment Narrative Recap

To own shares in Fair Isaac today, you have to believe that the company’s position at the center of credit risk assessment, especially in the US mortgage market, remains essential amid structural change. The recent addition of Brown Advisory as a shareholder underscores confidence in Fair Isaac’s resilience, but this new support does not alter the short-term spotlight on regulatory risk, particularly competition from alternatives like VantageScore and potential margin pressure from market shifts.

Among recent developments, the adoption of FICO Score 10 T by Guild Mortgage is most relevant, showing continued client uptake of next-generation scoring models even as headwinds persist for mortgage volume. This supports the notion that product innovation may help offset some near-term challenges, especially if broader adoption follows.

On the other hand, investors should keep in mind the implications of possible regulatory changes that could threaten FICO’s longstanding market share and revenue concentration risk if...

Read the full narrative on Fair Isaac (it's free!)

Fair Isaac's narrative projects $2.9 billion revenue and $1.1 billion earnings by 2028. This requires 14.3% yearly revenue growth and a $467 million earnings increase from $632.6 million today.

Uncover how Fair Isaac's forecasts yield a $1875 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Nineteen members of the Simply Wall St Community estimate FICO’s fair value from as low as US$1,005 to over US$2,627 per share. While opinions widely vary, many are watching whether regulatory shifts or competition from alternative scoring models could affect FICO’s long-term earnings and pricing power.

Explore 19 other fair value estimates on Fair Isaac - why the stock might be worth as much as 70% more than the current price!

Build Your Own Fair Isaac Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fair Isaac research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Fair Isaac research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fair Isaac's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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