{"id":472624,"date":"2026-02-13T15:35:07","date_gmt":"2026-02-13T15:35:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/472624\/"},"modified":"2026-02-13T15:35:07","modified_gmt":"2026-02-13T15:35:07","slug":"jefferies-turns-bullish-on-ai-fraud-software-name-as-demand-accelerates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/472624\/","title":{"rendered":"Jefferies turns bullish on AI fraud software name as demand accelerates"},"content":{"rendered":"<p>Jefferies expects that accelerating demand for artificial intelligence-driven fraud prevention will boost shares of Mitek Systems higher. The bank upgraded the software company to a buy rating from hold, calling it &#8220;an AI beneficiary that provides fraud, identity, and digital check solutions.&#8221; Analyst Surinder Thind also bumped his price target to $15 from $11. Shares of Mitek Systems have popped 14% over the past 12 months. They have added 9% this year. Thind&#8217;s new forecast implies further upside of 30%. MITK 1Y mountain MTK 1Y chart Thind&#8217;s upgrade comes after Mitek reported its fiscal first-quarter results last Thursday. The company earned an adjusted 26 cents per share in its last quarter, surpassing the 18 cents analysts polled by FactSet had expected. Mitek&#8217;s $44.2 million revenue also beat the estimated $42.5 million. &#8220;The results of this quarter combined with the growing momentum in the business signals a potential positive inflection in the company&#8217;s underlying fundamentals, making current valuation an attractive entry point,&#8221; Thind wrote. &#8220;Our downgrade of the stock 18 months ago reflected volatile results and near-term uncertainty, but at this point, the traction the Fraud &amp; ID business is experiencing is hard to ignore, especially with synthetic fraud (i.e., AI fraud) on the rise and driving accelerating demand.&#8221; The analyst has confidence that Mitek&#8217;s Fraud &amp; ID business will grow at a pace in the mid-teens, while the company should grow organically at a high single-digit pace. He also believes that Mitek&#8217;s original Check Verification business should benefit from increased digital penetration and stable revenues. &#8220;We note the Check Verification business process 1.2B transaction each year, and has upwards of 99% market share, giving it strong pricing power should volumes begin to exhibit any weakness,&#8221; he added. &#8220;While the Check Verification business is highly profitable, only recently has the Fraud &amp; ID business, after years of investment, become profitable on a fully loaded run-rate basis.&#8221; The analyst sees Mitek&#8217;s margins growing based on the company&#8217;s scaling of its business alongside its careful cost management.<\/p>\n","protected":false},"excerpt":{"rendered":"Jefferies expects that accelerating demand for artificial intelligence-driven fraud prevention will boost shares of Mitek Systems higher. The&hellip;\n","protected":false},"author":2,"featured_media":472625,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,161,49,48,1385,192151,3097,61],"class_list":{"0":"post-472624","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-business-news","12":"tag-ca","13":"tag-canada","14":"tag-investment-strategy","15":"tag-mitek-systems-inc","16":"tag-stock-markets","17":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/472624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=472624"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/472624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/472625"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=472624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=472624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=472624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}