- Benchmark says Mitek Systems (NASDAQ:MITK) shares look undervalued after dropping more than 40% from a March peak.
- Analyst Mark Schappel calls the pullback "an overreaction" related to a patent infringement case against a Mitek customer.
- The analyst says Mitek's current price "seems like a ‘going out of business’ valuation in the current environment."
- The company's fundamentals are "sound" and it's positioned for margin expansion, writes Schappel.
- Benchmark maintains a Buy rating and trims the target from $14 to $11, saying the legal issue will remain an overhang until the next part of the litigation is resolved.
- Mitek shares are up 3.4% to $7.44.