Freedom Broker upgrades Strattec Security to Buy and cuts target to $79
On Nov. 3, Freedom Broker upgraded Strattec Security from Hold to Buy and reduced its price target to $79 from $83. The change followed Strattec's first-quarter fiscal 2027 results, including revenue of $147.19 million, down 3.4% year over year, adjusted EBITDA of $13.5 million, down 13.2% year over year, and a gross margin of 16.5%.
Why it matters
Freedom Broker's revised target lowers the broker's valuation benchmark while its Buy rating signals a more constructive risk-adjusted view. The company continues to face weaker automotive production and cost pressures, while the broker cited cash generation and operational improvement potential as support for its outlook.
Key facts
- 1Freedom Broker raised Strattec Security's rating from Hold to Buy and lowered its price target to $79 from $83. investing.com
- 2Strattec reported first-quarter fiscal 2027 revenue of $147.19 million, down 3.4% year over year. investing.com
- 3First-quarter fiscal 2027 adjusted EBITDA was $13.5 million, down 13.2% year over year. investing.com
- 4Gross margin was 16.5%, an improvement of 90 basis points sequentially. investing.com
- 5Freedom Broker maintained its fiscal 2027 revenue forecast at $562 million while cutting its adjusted EBITDA forecast to $40 million from $42 million and adjusted EPS forecast to $5.42 from $5.48. investing.com
Open questions
- Material 1 reports adjusted EPS of $1.85 in one passage and $2.22 in another for the same first-quarter fiscal 2027 results, without reconciling the difference.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.