Mitek Systems’ Promising Financial Outlook and Strategic Moves Justify Buy Rating

Analyst Scott Buck of H.C. Wainwright maintained a Buy rating on Mitek Systems (MITK – Research Report), with a price target of $13.00.

Scott Buck has given his Buy rating due to a combination of factors that highlight Mitek Systems’ promising financial outlook. The company reported record revenue for the second quarter of fiscal year 2025, surpassing expectations with $51.9 million, driven by higher-than-anticipated services and other revenue. This performance was accompanied by an improved gross margin and lower operating expenses, resulting in an EBITDA significantly above estimates.
Additionally, Mitek Systems’ strategic financial moves, such as securing a new term loan to replace convertible debt, suggest increased flexibility for share repurchases or mergers and acquisitions. The company is also making strides towards profitability in its Identity business, which is expected to become a positive contributor to EBITDA. Despite the need for consistent strong results over multiple quarters to regain previous valuation levels, these developments underpin Scott Buck’s confidence in maintaining a Buy rating with a $13 price target.

According to TipRanks, Buck is an analyst with an average return of -21.6% and a 23.01% success rate. Buck covers the Technology sector, focusing on stocks such as Veritone, Intrusion, and Lightpath Technologies.

In another report released on May 9, Craig-Hallum also maintained a Buy rating on the stock with a $15.00 price target.