Craig-Hallum bullish on Mitek Systems, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Mitek Systems with a Buy rating and $17 price target. The firm cites underrated fundamentals, several overhangs set to be resolved, and management gearing up for share repurchases due to valuation disconnect. Craig-Hallum expects Mitek to re-rate to its target multiple and possibly beyond as company files its FY23 10-K and regains NASDAQ compliance – it has been behind on its filings following its HooYu acquisition, investors understand and gain a better appreciation for the fundamentals of the business, management shifts capital allocation priorities from acquisitions to share repurchases, and corporate governance enhancements are made.