Strattec Security Corporation
STRT
pitch
long
null
Thesis
Strattec is expected to benefit from the growing market potential of re-codeable locks, with conservative estimates projecting $190 million in sales by 2009. With a normalized EBIT margin of 9%, the company could generate a NOPAT of $11 million and accumulate significant cash reserves, leading to a target stock price of $58, representing a 40% upside from the current price of $41.
Did it work?
worked
confidence: high
The stock price increased by 117% since the pitch, significantly exceeding the projected target price of $58, which represented a 40% upside from the initial price of $41. The thesis regarding the growth potential of re-codeable locks appears to have played out positively, leading to substantial gains for investors.
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