The analyst believes that Mitek Systems (NASDAQ:MITK), an identity validation platform operator, is poised for long-term margin expansion and further growth in the growing identity verification market. The analyst also believes that the current valuation doesn't reflect Mitek's future prospects and estimates a high upside for the stock.
- Mitek operates in a growing industry and has achieved significant growth in the medium to long term.
- Mitek's platform accounts for multiple factors for a complete analysis of the customer's verifiability.
- The company's offerings include biometric authentication software MiPass, a mobile deposit platform, and a check fraud defender.
- Mitek's customers include large companies such as PayPal, Airbnb, Chase, Morgan Stanley, MasterCard, Ameritrade, and Accenture.
The analyst notes that Mitek's revenue growth has partly halted recently due to a more difficult macroeconomic environment. However, the hiccup is expected to be temporary.
The analyst believes now is the right time to buy Mitek's stock due to its attractive valuation and the potential for significant margin expansion and growth in the future.
The analyst does not explicitly mention any risks related to the investment case.
The analyst suggests that investors should keep an eye on the company's revenue growth and competitive position in the market to ensure the investment thesis remains intact.