Freedom Broker Downgrades STRATTEC Security (STRT) to Hold

Freedom Broker analyst Kanagat Yertay downgraded STRATTEC Security (NASDAQ: STRT) from Buy to Hold with a price target of $83.00 (from $89.00).

The analyst comments "Q4 revenue of $151.8M beat our $147M estimate as OEM production fell just 1.4% versus the 3-4% decline management had assumed. Gross margin of 15.6% came in ~70bp below our forecast on a $1.9M FX headwind, $1.4M of cost of quality and the absence of $1.3M of prior-year tooling gains. Adjusted EBITDA of $12.5M was in line with our $12.3M. Adjusted EPS of $2.06 versus our $1.43 was flattered by Q4 tax adjustments and FX-driven other income; GAAP EPS was $0.95. For the year, revenue of $579.4M (+2.5%) and adjusted EBITDA of $50.5M (+15.3%) came in slightly ahead of us, with gross margin up 150bp to 16.5% and the balance sheet closing at $108.2M cash and no debt. NA production guided down ~2% with the Detroit 3 down nearly 6%, a peso opening at 16.90 against an FY26 average of 18.00, and SAE running at 11-12% of sales. We cut estimates materially and downgrade our rating to Hold, lowering our price target to $83 from $89."

For an analyst ratings summary and ratings history on STRATTEC Security click here. For more ratings news on STRATTEC Security click here.

Shares of STRATTEC Security closed at $75.04 yesterday.

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