Roth Capital Sticks to Its Buy Rating for Mitek Systems Inc

By Carrie Williams

Roth Capital analyst Darren Aftahi reiterated a Buy rating on Mitek Systems Inc (NASDAQ: MITK) today and set a price target of $9.50. The company’s shares opened today at $8.30.

Aftahi commented:

“We remain quite positive on shares of MITK following our meeting with senior executives. Its mobile ID business continues to expand to new verticals and we are encouraged by the tone of business prospects. Management remains confident in its patent portfolio position as it relates to mobile deposit and recent developments with USAA and financial institutions. USAA: We had the opportunity to discuss the recent USAA news of it sending letters to banks regarding engaging in potentially licensing USAA’s mobile deposit technology . Our general sense was that while MITK ‘s management takes all potential risks to its business and customers seriously, it felt strongly about its intellectual property position, specifically mobile deposit, and the protection of its customers. We note that MITK and USAA were engaged in a legal battle around mobile deposit technology from 2012 to 2014, with the final outcome being an out of court settlement with no monetary penalties to MITK. Our channel checks indicate USAA may be seeking a one-time license for its technology, and that it could be aimed more at smaller financial institutions. We note that we estimate a good majority of MITK’s mobile deposit business comes from top 25 financial institutions.”

According to TipRanks.com, Aftahi is a 1-star analyst with an average return of -0.7% and a 48.3% success rate. Aftahi covers the Technology sector, focusing on stocks such as The Meet Group Inc, Angie’s List Inc, and Remark Media Inc.

Mitek Systems Inc has an analyst consensus of Moderate Buy, with a price target consensus of $9.50.

The company has a one year high of $9.15 and a one year low of $5.26. Currently, Mitek Systems Inc has an average volume of 459.2K.

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Mitek Systems, Inc. is engaged in the the development, sale, and service of its proprietary software solutions related to mobile image capture and identity verification. It is a mobile imaging software solutions provider that allows users to remotely deposit checks, pay their bills, get insurance quotes, and transfer credit card balances by snapping a picture with their camera-equipped smart phones and tablets instead of using the device keyboard. Its technology is used in image capture, correction and intelligent data extraction in the mobile financial and business applications market. The company was founded in May 29, 1986 and is headquartered in San Diego, CA.