10 Best Cloud Computing Stocks to Buy Under $10

7. Mitek Systems Inc. (NASDAQ:MITK)

Current Share Price: $8.50

Number of Hedge Fund Holders: 26

Mitek Systems Inc. (NASDAQ:MITK) provides a cloud-based software platform and services for digital identity verification, mobile check deposits, fraud prevention and cybersecurity solutions. The company offers AI-powered technology that enables banks, financial services firms, and enterprises to verify user identities and authenticate transactions securely.

In a report dated February 11, H.C. Wainwright analyst Scott Buck maintained a Buy rating on Mitek Systems (MITK) with a $13 price target, citing growing demand for identity protection and fraud prevention solutions. The analyst noted that even though there were challenges in areas like mobile deposit reorders, the company’s Q1 FY25 revenue came in slightly above expectations. The stronger results show company’s underlying strengths and its potential for growth particularly in its fraud prevention and identity verification segments.

Moreover, the company reaffirmed its FY25 revenue guidance and narrowed its adjusted EBITDA margin outlook, which the analyst viewed positively. The analyst expects FY26 to bring faster revenue growth and stronger profitability as Mitek continues to streamline its business.

The consensus opinion on the stock is largely positive. The 1-year median price target of $13 indicates a 53% upside potential.