Goldman Sachs Reiterates 'Buy' Rating on Fair Isaac Corporation (FICO)

With a year-to-date decline, strong upside potential, and significant hedge fund interest, Fair Isaac Corporation (NYSE:FICO) secures a spot on our list of the 10 Most Oversold AI Stocks to Buy Now.

On August 5, 2025, Goldman Sachs reiterated its ‘Buy’ rating on Fair Isaac Corporation (NYSE:FICO) with a $1,915 price target. The investment firm’s bullish stance follows a non-deal roadshow with the company’s management. The analyst notes that, despite the Federal Housing Finance Agency’s recent decision on lender choice and the expectation that 2026 pricing hikes will follow past trends, the company intends to maintain its mortgage score pricing strategy.

The investment firm also highlighted the company’s strong pricing power, driving Fair Isaac Corporation (NYSE:FICO)’s 16.66% revenue growth in the past year. Moreover, it was reported that no market share loss to VantageScore occurred. Thus, the analyst expects lenders to prefer Classic FICO scores. However, caution is advised if competitors price aggressively.

Fair Isaac Corporation (NYSE:FICO) is a leading analytics and decision management solutions provider, known for its FICO credit scores. It is included in our list of the most oversold stocks.

While we acknowledge the potential of FICO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.