Mitek Systems: A Buy Rating Amidst Growth Potential and Attractive Valuation

William Blair analyst Jake Roberge has maintained their bullish stance on MITK stock, giving a Buy rating on April 18.

Jake Roberge has given his Buy rating due to a combination of factors that suggest Mitek Systems is undervalued and poised for growth. He highlights that Mitek’s stock is currently trading at a multiple substantially lower than its mature-state software peers, which indicates an attractive valuation. Despite the filing issues that have recently complicated Mitek’s narrative, Roberge is optimistic about the company’s potential to grow fundamentally over the long term. This potential is supported by their promising product offerings in the mobile check deposit and identity verification markets.

Roberge’s confidence in Mitek Systems is further bolstered by the introduction and positive momentum of new products such as Check Fraud Defender, MiVIP, and ID R&D, which he believes will contribute significantly to the company’s revenue model. While acknowledging the risks, including patent disputes and the possibility of delisting from Nasdaq, Roberge maintains a positive outlook based on the company’s solid growth outlook and strong margin profile. His assessment suggests that these risks are outweighed by the potential for Mitek’s innovative solutions to capture market share and drive profitability.

In another report released on April 18, Craig-Hallum also assigned a Buy rating to the stock with a $19.00 price target.

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Mitek Systems (MITK) Company Description:

Mitek Systems, Inc. engages in the innovation of mobile capture and digital identity verification solutions. Its products include Mobile Deposit, Mobile Verify, Mobile Fill, Mobile Docs, A2iA CheckReader, A2iA XE, A2iA DocumentReader, A2iA TextReader, and ICAR ID_CLOUD. The company was founded on December 16, 1983 and is headquartered in San Diego, CA.