Needham & Company Suspends Rating on Mitek Systems (MITK) Pending Clarity on USAA Lawsuit

April 12, 2012 7:27 AM EDT
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Price: $6.40 --0%

Rating Summary:
    6 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 28 | Down: 28 | New: 23
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Needham & Company suspends rating on Mitek Systems (Nasdaq: MITK) pending clarity on USAA lawsuit.

Analyst, Mayank Tandon, said, "MITK put out a press release yesterday saying that it will fight the lawsuit and believes that USAA's mobile check deposit infringes on its patents (implying USAA has to acquire a license like its other customers to use the technology), and MITK did not misappropriate trade secrets from USAA as USAA has alleged (the timing of the claim appears to be suspect since USAA and MITK first began work on mobile check deposit back in 2005). We are encouraged by MITK's response to fight the allegations and defend its patents, and we believe this could help provide support for the stock after the 40%+ decline since USAA filed the lawsuit last Monday."

"If MITK is successful in defending its patents in the lawsuit we would look to become constructive on the stock once again since we believe MITK is well positioned to monetize the large mobile banking and payments market opportunity."

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