Freedom Broker upgrades Strattec Security to Buy from Hold, lowers price target to $79 from $83

Freedom Broker upgraded Strattec Security (STRT) to buy, cutting its price target to $79 from $83. The company reported Q1 FY2027 revenue of $147.2M, down 3.4% YoY, and adjusted EBITDA of $13.5M, down 13.2% YoY. Despite challenges, gross margin improved to 16.5%. The stock trades at a P/E of 15.43 with a market cap of $256M. Analysts highlight its strong cash position and potential for operational improvements.

Strattec Security Corp (STRT) reported Q1 2027 adjusted SA&E of $15M, with $1M in E&D recoveries. CEO Jennifer Slater and CFO Matthew Polley discussed M&A, share repurchases, and long-term margin targets. Net sales fell 3.4% to $147.2M, gross margin declined 80 bps to 16.5%, and net income was $4.8M. The company expects $40M in annual operating cash flow and a 23-25% tax rate.

Strattec Security (STRT) reported Q1 fiscal 2027 results, with CEO Jennifer Slater noting progress in business transformation. The company expects a 15%-16% gross margin and $40M in operating cash flow for the fiscal year.

Strattec (STRT) reported Q1 2027 sales of $147.2M, down 3.4% YoY, with gross margin at 16.5%. Operating cash flow was $10.8M, and adjusted EBITDA rose to $13.5M from $12.5M sequentially. The company repurchased 68,000 shares for $5M and highlighted cost-reduction efforts and strategic initiatives for long-term growth.

Strattec Security (STRT) reported Q1 earnings, highlighting $1.3M in annualized savings from restructuring and $10M expected from ongoing initiatives. Expenses rose to $17.9M, driven by acquisition and transformation costs. The company repurchased 68,000 shares for $5M, ending with $111.8M in cash. Management expects fiscal 2027 gross margin of 15-16%, citing lower auto production and inflation.

Strattec Security Corp. (STRT) reported fiscal Q1 profit of $4.8M, or $1.19 per share, with adjusted earnings of $1.85 per share. Revenue was $147.2M. The company manufactures automotive locks and keys.