Benzinga | Jan 6, 2022 03:05PM EST

Needham Names Fair Isaac Top Pick for 2022; Adds To Conviction List

* Needham analyst Kyle Peterson raised the price target on Fair Isaac Corp (NYSE:FICO) to $590 from $550 and kept a Buy rating on the shares. The price target implies a 33% upside.

* Peterson also named the stock Needham Top Pick for 2022 and added it to Needham's Conviction List.

* The market is underestimating the value of Fair Isaac Scores business, which is a premium asset with solid growth potential and best-in-breed margins.

* Peterson adds that he expects the company's Scores business to consistently sustain double-digit revenue growth over the next several years and use the cash flow from this business to repurchase stock and fund growth in the software business.

* Fair Isaac is an applied analytics company.

* Price Action: FICO shares traded higher by 4.22% at $443.86 on the last check Thursday.