Mitek Systems shares rise 17.81% after-hours as Jefferies upgrades to Buy from Hold, raising price target to $15.

Mitek Systems surged 17.81% in after-hours trading following Jefferies' upgrade of its stock to Buy from Hold, accompanied by a raised price target to $15 from $11. The upgrade cited Mitek's position as an AI-driven fraud and identity verification solutions provider, bolstered by its recent Q1 earnings beat (adjusted EPS of 26 cents vs. 18 cents expected) and revenue of $44.2 million, exceeding estimates. The firm’s Check Verification business, processing 1.2 billion transactions annually with 99% market share, further underscores its competitive advantage. Jefferies highlighted the stock’s attractive valuation and growth potential, while Mitek’s recent technological enhancements in Spain to combat AI-driven fraud reinforced investor confidence in its long-term prospects.