GS cuts SKF on subdued growth outlook, rising competition

SKF AB

20/01/2026 08:22

** Goldman Sachs cuts Swedish industrial bearings maker SKF SKFb.ST by two notches, to "sell" from "buy", citing a subdued growth outlook, rising competition

** The brokerage notes SKF's projected growth of 4.5% annually through 2027 lags the capital goods sector's estimated 6% growth

** GS expects long-term competitive challenges to intensify, particularly from China, as SKF has underperformed the global bearings market for eight years

** Broker sees potential loss in value for the company's FY 2026 guidance, notes the current valuation does not discount risks to its earnings estimates

** The planned automotive division spin-off may not unlock its full value in the near term due to cash costs and a continuing manufacturing agreement between Auto and Industrials units, says GS

** Out of the 18 analysts, eight rate SKF "strong buy"/"buy", eight "hold", and two "sell"/"strong sell" - LSEG data

(Reporting by Vera Dvorakova)

((vera.dvorakova@thomsonreuters.com))