Mitek Systems, Inc. (MITK)

[Brenton]

Mitek Systems, Inc (MITK) has 9 percent upside potential
Author: Anna Jones
Posted On: April 29, 2016

A few Wall Street research firms recently weighed in on Mitek Systems, Inc. (MITK). They have favorable assessment of the stock, with a mean rating of 2. The stock is rated as buy by 3 analysts, with 1 outperform and 1 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 5 analysts offering adjusted EPS forecast have a consensus estimate of $0.04 a share, which would compare with $0.05 in the same quarter last year. They have a high estimate of $0.05 and a low estimate of $0.03. Revenue for the period is expected to total nearly $7.38M from $5.67M the year-ago period.

For the full year, 5 Wall Street analysts forecast this company would deliver earnings of $0.21 per share, with a high estimate of $0.22 and a low estimate of $0.2. It had reported earnings per share of $0.21 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $32.56M versus 25.37M in the preceding year.

The analysts project the company to maintain annual growth of around 25 percent over the next five years as compared to an average growth rate of 20.34 percent expected for its competitors in the same industry.

Among the 3 analysts Thomson/First Call tracks, the 12-month average price target for MITK is $7.83 but some analysts are projecting the price to go as high as $8. If the optimistic analysts are correct, that represents a 9 percent upside potential from the recent closing price of $7.31. Some sell-side analysts, particularly the bearish ones, have called for $7.5 price targets on shares of Mitek Systems, Inc..

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In the last reported results, the company reported earnings of $0.04 per share, while analysts were calling for share earnings of $0.02. It was an earnings surprise of 100 percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.


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Source: http://cwruobserver.com/2016/04/29/mitek-systems-inc-mitk-has-9-percent-upside-potential