Roth Capital analyst Darren Aftahi downgraded Mitek Systems (MITK) to Neutral from Buy with a price target of $8, down from $12.50. The potential "trickle-down litigation risk" from USAA against Mitek's mobile deposit customer's acts is "too big of a risk/uncertainty to shares," Aftahi tells investors in a research note. He believes this could drag on for an extended period of time, causing distraction and additional legal costs. While Mitek does not believe it is the target of a lawsuit from USAA, the ruling in favor of USAA against Wells Fargo (WFC) could prove to be too big of a risk to justify buying Mitek shares currently, says Aftahi.

Conference call to provide an overview of check fraud defender and demo with CEO Carnecchia and CFO Lyle to be held on May 1 at 1 pm hosted by Northland. Webcast Link