Analyst Scott Buck from H.C. Wainwright maintained a Buy rating on Mitek Systems and keeping the price target at $13.00.
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Scott Buck has given his Buy rating due to a combination of factors that highlight Mitek Systems’ positive financial trajectory. The company’s recent quarterly results exceeded expectations, with revenue reaching $45.7 million, surpassing the anticipated $44.3 million. This growth was primarily driven by a stronger demand for Mitek’s identity solutions, which indicates a favorable market trend for their services.
Additionally, Mitek Systems is experiencing a shift towards more predictable SaaS revenue, which now constitutes a significant portion of their total revenue and is growing at a robust rate. The company is also nearing profitability in its identity business segment, which has historically been a financial burden. This shift towards profitability is expected to enhance operating margins as the business scales. Despite modest revenue growth projections for FY26, the overall improvements in operational efficiency and financial performance support a favorable risk-reward outlook, justifying the Buy rating with a $13 price target.
In another report released on August 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $11.00 price target.