Mitek Systems Inc. (NASDAQ:MITK)

CAPS Rating: 2 out of 5

Recs

1
Player Avatar VPHM (< 20) Submitted: 7/24/2011 1:20:41 PM : Outperform Start Price: $9.80 MITK Score: -127.47

As mobile banking users discover the convenience, utility, time-savings as well as cost savings of using mobile check deposit with a camera enabled cell phone and banks realize huge cost savings by driving check deposits through a less costly processing channel then their branches, ATMs and mail Mitek will grow at a tremendous rate.If this Mercatus projection even comes close to fruition revenue and profits will follow thereby rewarding investors - "Mercatus forecasts that with Mobile RDC, more than 1.5 billion check deposit-making transactions will be eliminated from U.S. bank branches by 2014."IMHO Mitek is fast becoming the defacto gateway to mass consumer mobile payments.

Member Avatar VPHM (< 20) Submitted: 9/1/2011 8:41:51 PM
Recs: 0

Update...

Since my Mitek recommendation several BIG names have initiated coverage with buy ratings and I expect more are to follow; Janney's initiation of MITK with a Buy was issued on 08/02/2011 with a target price of $18 and William Blair issued an Outperform on 8/29/2011.

Janney says - MITK has a first-mover advantage in mobile check deposit, with many of the biggest US banks already signed up as customers, a deep distribution channel, and a large addressable market. The analyst also says mobile is becoming the new battleground for banks and brokerage firms, and he expects additional national advertising campaigns to hit the market over the next 12 months, raising awareness of this technology.

Blair says - "The market is growing rapidly, driven by increasing penetration of smartphones (we expect 114 million smartphones to be sold in the United States just this year) and greater use of applications as data costs decline," he added. "We peg the market opportunity at more than $2 billion for Mitek's broader set of applications. With more than 80 customers and a large distribution base (through partners such as Fiserv and Jack Henry), Mitek has a key first-mover advantage that puts it roughly 18-24 months ahead of competitors."

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