William Blair analyst Jake Roberge has maintained their bullish stance on MITK stock, giving a Buy rating yesterday.
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Jake Roberge has given his Buy rating due to a combination of factors contributing to Mitek Systems’ performance. The company reported strong first-quarter results that exceeded expectations, particularly with a 1% revenue growth that surpassed the anticipated 3% decline. This positive outcome is attributed to recent strategic operational changes that have improved the sales process and enhanced the identity business segment.
Moreover, the adoption of MiVIP by new identity customers and investments to transition existing clients from legacy solutions are promising indicators of future growth. Despite a 9% decline in mobile deposit revenue, this was primarily due to the timing of deals, and the transaction volumes remained stable at 1.2 billion annually. Additionally, there is significant progress in the Check Fraud Defender segment, evidenced by new top-tier bank contracts and an approaching $12 million in annual contract value. Roberge believes that these developments, along with the company’s strategic focus, provide strong growth potential for Mitek Systems.
In another report released yesterday, Northland Securities also reiterated a Buy rating on the stock with a $13.00 price target.