Roth Capital Starts Shopify, XO Gropu, Mitek At Buy

Roth Capital's Darren Aftahi initiated coverage on three Internet & Media stocks Thursday afternoon,

,

and

, each with Buy ratings.

Aftahi called Shopify "a pure-play on agnostically enabling omni-channel commerce." Amid the company's "healthy growth," he estimated penetration remains below 1 percent. The Roth analyst highlighted three catalysts for the company and stock:

XO is viewed as "a market-leading brand presence in the digital wedding services industry" by Aftahi. He applauded new management which has streamlined the company's business and "focused the company on the 82% of its sales (online advertising and transactions) which are growing..." Aftahi also likes XO's transformation of The Knot into what he calls "the 'Uber' for weddings app," something he thinks will be attractive to milennials.

Aftahi brought up Mitek's recent new products and said the company is now viewed "as a multi-product, multi-geography growth opportunity in the mobile imaging market." He highlighted a belief recent customer wins "seem to be coming at a more rapid pace" and have started demonstrating "the broad use case for its platform and products, making it a compelling growth story for investors looking for exposure to mobile and m-commerce."